New Delhi:
The Finance Minister, Nirmala Sitharaman, has made an important announcement for stock market investors in the Budget 2024.
The government plans to increase the Securities Transaction Tax (STT) on Futures and Options (F&O) securities.
This change has impacted major local stock market indices, causing a decline in both Sensex and Nifty.
Details of the Announcement
During the budget presentation for the fiscal year 2024-25, Finance Minister Sitharaman revealed that the capital gains tax limit for certain financial assets will be raised to ₹1.25 lakh per year for middle and upper-middle-class individuals.
Additionally, the STT on F&O securities will be increased by 0.02% and 0.1% respectively.
Impact on the Stock Market
Following the announcement, the stock market experienced a significant drop. On the second trading day of the week, both Sensex and Nifty showed declines.
The Sensex fell by 1,266.17 points to 79,235.91, while the Nifty decreased by 435.05 points to 24,074.20.
SEBI’s Response
The Securities and Exchange Board of India (SEBI) is closely monitoring the situation.
An expert group formed by SEBI is evaluating proposals to protect small investors from the risks associated with F&O trading.
This group will review the advantages and disadvantages of seven proposals aimed at safeguarding these investors,
as SEBI reports that 90% of small investors tend to lose money in F&O trades.
