New Delhi, Feb. 1 -- In an effort to discourage futures and options (F&O) trading, Finance Minister Nirmala Sitharaman has proposed to raise Securities Transaction Tax (STT) on such derivatives trade.

Presenting the Union Budget for 2026-27, the finance minister proposed to raise the STT on futures trades to 0.05 per cent from 0.02 per cent.

On options premium and exercise of options, the STT on both is proposed to be raised to 0.15 per cent from 0.1 per cent and 0.125 per cent, respectively.

"I propose to raise the STT on Futures to 0.05 percent from present 0.02 percent. STT on options premium and exercise of options are both proposed to be raised to 0.15 percent from the present rate of 0.1 percent and 0.125 percent respectively," s...