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BSE MD & CEO says STT hike not for the first time, a move towards long-term investingBSE MD & CEO Sundararaman Ramamurthy said that this is not the first time that STT has increased and everytime such an instance happens, the market reacts the way it has today.By Mangalam Maloo   |  Hormaz Fatakia   February 1, 2026, 2:54:49 PM IST (Updated)2 Min ReadSundararaman Ramamurthy, the Managing Director and CEO of the Bombay Stock Exchange (BSE), told CNBC-TV18 in an exclusive conversation that the hike in Securities Transaction Tax (STT) in the Futures & Options space is not for the first time and indicates that the government wants to encourage people to move more towards long-term investing.

Finance Minister Nirmala Sitharaman, in her Budget 2026 speech on Sunday, February 1, increased STT on futures trading by 150% and on options trading by 50%.

The move led to a sharp sell-off in the equity markets, particularly in the capital market linked names such as BSE, Angel One, and Groww, which fell up to 15% intraday, before staging a minor recovery. For BSE, nearly 55% of its topline comes from the F&O segment.

Ramamurthy said that this is not the first time that STT has increased and everytime such an instance happens, the market reacts the way it has today.

The BSE MD & CEO went on to add that although he cannot quantify a near-term impact of the STT increase, there is unlikely to be a dip in market volumes over the medium to long-term.

Calling it a change in sentiment, Ramamurthy said that it is unlikely to actually lead to a dip in actual investing.

Shares of BSE are currently trading 7% lower, while those of Angel One are trading with losses of up to 8%. Shares of Billionbrains Garage Ventures (Groww) are also trading with losses of over 8%.Continue ReadingFirst Published: Feb 1, 2026 2:51 PM ISTTagsAngel OneBSE share priceBudgetFinance Minister FM Nirmala SitharamanSecurities Transaction TaxSTT