STT hike on derivatives from April 1: Impact on traders
Business
From April 1, 2026, trading in India's derivatives market is about to get pricier.
The government is hiking the Securities Transaction Tax (STT), bumping futures from 0.02% to 0.05% and options from 0.10% to 0.15%.
For intraday traders, especially those making lots of quick trades, this means higher costs on top of already increased brokerage fees at places like Zerodha.
Traders will have to rethink their approach
With the STT now applying even to losing trades, many traders will have to rethink their approach.
Several market experts pointed out that these extra costs could push people toward making fewer but more thoughtful trades, focusing on quality over quantity.
Basically, expect less rapid-fire trading and more emphasis on smart moves as everyone adapts to the new rules.