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Trading volume will hold steady despite higher STT imposed in Budget 2026: ICRA

The Union Budget 2026 raised STT on futures and options from April 1, 2026. ICRA expects a 16 percent rise in STT collections in financial year 2027. Derivatives volumes cross 500x GDP in India hence the government said the move aims to curb excessive speculation

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Traders react after seeing the fall in the sensex, nifty market following the Union Budget 2026. Pic/PTI

Traders react after seeing the fall in the sensex, nifty market following the Union Budget 2026. Pic/PTI

With the announcement of hike in the Securities Transaction Tax (STT) on futures and options (F&O) trades in the Union Budget 2026, credit rating agency ICRA projected a 16 percent spike in the STT collections for the Financial Year 2027, above the revised FY2026 estimate.

In ICRA's view, these budgeted numbers assume that trading volumes will hold steady despite the higher transaction costs.

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