New Delhi, Feb. 2 -- A day after Budget announcement, Union Finance Minister Nirmala Sitharaman said on Monday the hike in Securities Transaction Tax (STT) on futures and options (F&O) was to discourage investors from getting into speculative trading.

She said many parents had called up and apprised that their children were investing and losing money in F&O trading. "F&O is a highly speculative market," she asserted.

The finance minister told reporters that the increase in STT on F&O was categorically to discourage speculation in derivatives trade.

Citing a SEBI report, she said that 90 per cent of people who invest in F&O lose their money. "People are losing money due to high speculation in F&O trading," she added.

A study conducted ...