New Delhi, Feb. 2 -- With the announcement of hike in the Securities Transaction Tax (STT) on futures and options (F&O) trades in the Union Budget 2026, credit rating agency ICRA projected a 16% spike in the STT collections for the Financial Year 2027, above the revised FY2026 estimate.

In ICRA's view, these budgeted numbers assume that trading volumes will hold steady despite the higher transaction costs.

"Nonetheless, some moderation in derivatives activity remains a risk, which could translate into lower trading turnover and consequently softer brokerage volumes and revenues from the derivatives segment for the securities broking industry," ICRA said.

The proposed increase in STT on F&O trades, following the earlier hike implemented...