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India’s STT hike revives a 2004 tax and spooks Gen Z futures traders
Economy
Published on 24 April 2026
A 2004 anti speculation tool is now costing futures traders more
India’s recent Securities Transaction Tax increase brings back a 2004-era levy meant to curb speculation and reduce capital-gains leakage. Originally designed to replace LTCG, STT now sits alongside it, aiming at a booming Gen Z-driven F&O market. The result: higher trading costs, cooler volumes, and pressure on market intermediaries.
- STT, introduced in 2004, is back in focus with a new hike
- The tax now runs alongside LTCG instead of replacing it
- Higher costs are cooling activity in the F&O boom
- Intermediaries face added pressure as volumes soften
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times