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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

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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