New Delhi, Feb. 2 -- Union finance minister Nirmala Sitharaman, in her Budget 2026 speech, increased the securities transaction tax (STT) on futures and options (F&O) transactions, raising the levy on futures two-and-a-half times to 0.05% from 0.02% and on options by 50% to 0.15% from 0.1%. "To provide reasonable course correction in the F&O segment in the capital market and generate additional revenues for the government, it is proposed to raise the STT on futures to 0.05% from the present 0.02%. STT on options premium and exercise of options is proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively," said Sitharaman while presenting the Union Budget 2026-27. The announcement led to a sharp fall in the equity...