A day after Budget announcement, Union Finance Minister Nirmala Sitharaman said on Monday the hike in Securities Transaction Tax (STT) on futures and options (F&O) was to discourage investors from getting into speculative trading. She said many parents had called up and apprised that their children were investing and losing money in F&O trading. The finance minister told reporters that the increase in STT on F&O was categorically to discourage speculation in derivatives trade. Citing a SEBI report, she said that 90 per cent of people who invest in F&O lose their money. "People are losing money due to high speculation in F&O trading," she added.

Source: Economic Times February 02, 2026 18:31 UTC