Rajesh Baheti, Managing Director at Rosi Capital Services, criticises the recent hike in Securities Transaction Tax (STT), arguing it signals the government’s disapproval of the F&O market. He believes the move is primarily for revenue generation, not just curbing speculation, and warns it could harm market liquidity by hurting high-frequency traders. Baheti suggests this continues a broader trend of increasing taxation on capital markets, reflecting a government bet that economic growth alone will sustain markets.
