Mumbai, Feb. 9 -- India's largest stock exchange, National Stock Exchange (NSE), hopes the government will reconsider the hike in securities transaction tax (STT) on index and single-stock futures from the next fiscal year, as announced in the Budget for FY27.

"The increase in STT is seen as a negative for index and single stock futures, in particular, because futures are generally seen as genuine instruments for hedging by long-term investors," said Sriram Krishnan, chief business development officer, while speaking at NSE's Q3 investor call.

Index futures refer to futures contracts on indices like Nifty and Bank Nifty, while single-stock futures are derivatives on stocks like Reliance Industries, HDFC Bank, etc

They are not the instr...