Revision in Securities Transaction Tax (STT) Rates – Effective April 1, 2026

The Exchange has issued a circular informing members about revisions in Securities Transaction Tax (STT) rates, following the enactment of the Finance Act, 2026, which received Presidential assent on March 30, 2026.

These revised rates will be applicable to transactions executed on or after April 1, 2026.

STT Rates – Summary Table

Impact on Market Participants

• The revision primarily impacts derivatives traders, increasing transaction costs in options and futures segments.
• Cash market transactions remain unchanged, ensuring no additional burden for delivery-based investors.
• The higher STT in derivatives may influence trading volumes, hedging strategies, and cost structures for active traders.

Conclusion

The revision in STT rates reflects a regulatory move to recalibrate taxation in the derivatives segment. While long-term investors in equities remain unaffected, active traders in options and futures should factor in the increased transaction costs while planning their strategies.