SEBI and STT, what is the history around STT?

[nithin]

@som_banerjee

@nithin why SEBI always says they will increase STT to curb participation? what is the history around STT, when was it introduced? You think increasing STT will reduce participation?

And is this common practice around developed world markets?

I had shared this earlier, updating this with the latest changes.

How has STT changed historically? What has been its impact on traders, exchanges and brokerages?

STT or security transaction tax was introduced in 2004 when Long term capital gain tax (LTCG or tax paid on any gains from stocks which are held for more than 1 year) was removed by the then finance minister P M Chidambaram. STT since it is collected upfront by the exchanges is so much more easier for the government to collect than LTCG which requires investors to voluntary declare and pay. In the budget of 2018, LTCG of 10% for gains over Rs 1lk was introduced, but STT wasn’t reduced. For lik…

Historical STT in India

STT - Security transaction tax on Equity & Equity derivatives (in %)	B	C	D	E	F
Date	Cash Delivery	Cash Intra-day	Futures	Option	Exercised Options (contract value)
Charged	Buy and Sell	Only sell	Only sell	Only sell	All
1st Oct 2004	0.075	0.015	0.01	0.017 (contract value)	0.01
1st June 2005	0.1	0.02	0.0133	0.017 (contract value)	0.0133
1st June 2006	0.125	0.025	0.017	0.017 (contract value)	0.017
1st June 2008	0.125	0.025	0.017	0.017 (premium value	0.125
1st June 2013	0.1	0.025	0.01	0.017 (premium value)	0.125
1st June 2016	0.1	0.025	0.01	0.05 (premium value)	0.125
1st April 2023	0.1	0.025	0.125	0.0625(premium value	0.125
1st October 2024	0.1	0.025	0.02	0.1(Premium value)	0.125

CTT- Commodity transaction tax on Commodity & Commodity derivatives (in %)
Date	Futures (sell)	Options (Sell - premium value)	Sale of an Exercised Option (contract value)
1st July, 2013	0.01	0.05	0.0001