POST BUDGET REACTIONS: Raising the STT on options comes as a surprise

By Mr Shrey Jain, Founder and CEO, SASOnline.in (South Asian Stocks), India’s first deep discount trading firm
“Raising the STT on options comes as a surprise. This would surely increase the impact cost for the average trader . We expect traders will feel the pinch and shift from traditional brokerages to discount brokerages to offset this increase in trading expenses. For the market makers who provide for liquidity in the market this would prove as a deterrent as their margins would be impacted . However introduction of other derivative products in the commodity markets would give further venues for expansion and revenue growth. Further w.r.t 10 percent tax on dividend in addition to DDT if dividend more than Rs 10 lakh a year, corporates would be better off deploying profits for business expansion rather than payouts to promoters which would help revive the capex cycle .”