India, Feb. 1 -- The Union Budget 2026 has proposed a hike in Securities Transaction Tax (STT) to deter participation of newbie investors from F&O trading - a risky business. The intent is to moderate the "unchecked explosion" of retail gambling in the financial markets.

For a retail beginner-often characterised as young, tech-savvy, and operating with a sub- Rs.5 lakh annual income-this is more than a marginal fee increase. It is a fundamental shift in the "break-even" math of a trade.

Long story short, for the beginner, the "casino" just got a lot more expensive to enter. Here is how the hike specifically impacts a Rs.10 lakh portfolio:

If you are a long-term investor buying stocks to hold for years, these changes have zero impact on...