Updated On: 02 February, 2026 03:05 PM IST | New Delhi | PTI
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
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.