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Finance Bill 2023: STT hike on F&O likely to make a dent in volumes

Sebi study for FY22 had shown that 9 out of 10 F&O traders had incurred losses

BSE, NSE, Sensex, Nifty, stock markets
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Khushboo Tiwari Mumbai
The surprise 25 per cent hike in securities transaction tax (STT) on sales of futures and options (F&O) contracts has met with a disapproval from the stock-broking community, who fear a hit on volumes, impact costs and profitability. 

The Ministry of Finance, correcting a typographical error in the amendments to The Finance Bill,2023 announced an increase in STT from the current rate of Rs 5,000 to Rs 6,250 per Rs 1 crore for sale of options. Further, for sale of futures in the securities, STT rate has been increased from 0.01 per cent to 0.0125 per cent, translating into Rs

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First Published: Mar 24 2023 | 8:47 PM IST

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