Impact of STT on traders, exchanges and brokerages
Every budget day for the last 15+ years, I’ve woken up hoping that STT is reduced. Zerodha customers alone pay ~₹2500 cores in STT, stamp duty, & GST annually. Overall, traders lose more money in transaction costs & impact costs than to the markets.
Lower txn costs improve liquidity, hence decrease impact costs. But on flip side, you could argue that people may speculate more, which isn’t good—one reason for Nudges on Kite. There needs to be a balance between both. Hoping STT reduces this year.