Business
Will the increase in STT F&O and short term capital tax affect brokers and trading volumes?
If the 2024 Economic Survey is to be believed, increases in the short-term capital gains tax and the securities transaction tax (STT) on futures and options are all likely. Both rates were raised in the budget, as was the long-term capital gains tax. While such measures would act as a dampener on the market, analysts are not sure whether they would actually lead to a sharp decline in investor activity, given the current bullish trend in the market.
“We do not expect any material impact on volumes based on past experience (in 2023, STT was increased by 25%, but notional volumes actually increased in Q1FY24), given that trading costs are not material in options trading,” IIFL Securities said. It expects neutral to marginal or no negative impact on markets due to rate hikes.
Sanjay Sinha, Founder, Citrus Advisors, said the increase in STCG to 20% and LTCG to 12.5% is a major blow. In light of all the concerns raised about the hyperactive interest in the F&O segment, it is not surprising that the STT on F&O has been increased 5 times from 0.02% to 0.1%, he said, as the analyst is hopeful that these measures will moderate the frenzy in the F&O space now.
In a post, Zerodha’s Nithin Kamath said, “If the idea was to cool down activity in the market, this could do the trick.” Kamath noted that Zerodha collected around Rs 1,500 crore from STT last year. “If volumes don’t come down, it will increase to around Rs 2,500 crore at the new rates,” he said.
Despite the recent fall, the BSE Sensex and NSE Nifty are up 11-12 per cent year-to-date. While taxes may hurt equity returns, the inherent advantage of equity investments, namely a superior return profile, liquidity and inflation-hedging flows, should not be affected, IIFL Securities said.
Two days ago, the Economic Survey warned of the possibility of complacency and said that expectations of even higher yields could lead to speculation in the markets. India cannot afford over-financialisation of the economy at its current stage of development, the survey said, indicating that the behavioural response of investors to any sharp correction would be one of feeling cheated by unseen and larger forces. They may not return to financial markets for a long time, it warned.
“Stock markets were disappointed by the hike in tax on short-term and long-term capital gains and the removal of indexation benefit for real estate and gold. But with the top 100 active equity funds having 3.2% cash, any market correction is likely to result in a cash deployment,” Elara Securities said.
Disclaimer: Business Today provides stock market information for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
|
Sources 2/ https://www.businesstoday.in/markets/stocks/story/will-higher-fo-stt-short-term-capital-tax-hit-brokerages-stock-exchange-volumes-438610-2024-07-24 The mention sources can contact us to remove/changing this article |
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: cgurgu@internetmarketingcompany.BizWebsite: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or collaboration@support.exbulletin.com
 |
 |
 |