Budget 2026 reshuffled India’s capital-market approach by raising the Securities Transaction Tax (STT) to curb speculative activity. At the same time, it doubled the GIFT IFSC tax holiday to 20 years, reinforcing a push for long-term global capital. The move also points toward India’s first offshore IPO pathway through the GIFT IFSC ecosystem.
India’s recent Securities Transaction Tax increase brings back a 2004-era levy meant to curb speculation and reduce capital-gains leakage. Originally designed to replace LTCG, STT now sits alongside it, aiming at a booming Gen Z-driven F&O market. The result: higher trading costs, cooler volumes, and pressure on market intermediaries.
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