Kotak AMC’s chief, Nilesh Shah, demanded a review of the combined Securities Transaction Tax (STT) and capital gains tax, arguing the dual levy is choking investor activity. Retail traders lost nearly ₹4 lakh crore in futures and options trading over five years, while India’s savings rate sits at around 30% of GDP.
Shah’s plea follows a broader debate over tax equity across asset classes. The STT, originally a substitute for capital gains tax, has been reinstated alongside the latter, inflating the overall burden for both domestic and foreign investors.
If the government acts, it may align India’s tax framework with global practices, potentially boosting investor sentiment ahead of the 2027 Union Budget and easing speculative spill‑overs.
The Finance Ministry reportedly is listening, but no timeline has emerged, leaving market watchers uncertain about when relief might materialize and how it could reshape the investment landscape.