The Economic Times

STT and F&O explained: Why has FM Nirmala Sitharamans proposed hike on Securities Transaction Tax in her Budget speech left traders worried? All FAQs answered

In the Union Budget 2026-27, Union Finance Minister Nirmala Sitharaman proposed a hike in Securities Transaction Tax (STT), on both futures and options, by up to 150%. After the announcement, the shares of BSE, Angel One, and Groww tanked and there was a bloodbath on Dalal Street. Here is a complete explainer of what STT, F7O trading are, and why the hike left traders worried.