Will Government Decision To Hike STT Curb Retail Investors' Participation In The F&O Segment?

On The Market Closing, Sakshi Batra and Shailendra Bhatnagar, in conversation with Nitin Raheja, ED of Julius Baer, discuss the impact of hiked Securities Transaction Tax (STT) on the futures and options (F&O) market. Raheja responded that while the STT hike may curb high-frequency automated trading, its impact on retail investors is uncertain. He suggests additional measures, like increasing lot size value and modifying margin requirements, to reduce retail participation. Raheja also noted that India's shift towards equity investments, driven by digitalization and COVID-19, has made markets more resilient. Despite this, market corrections are expected. He also discussed the Modi government's tough decision-making strategy, asserting that it is a business-oriented government focused on driving the economy forward. However, frequent changes in tax rates could be a concern for direct taxpayers and may impact efforts to widen the tax net. Listen in