Your arbitrage fund returns will fall by about 0.5% next year due to this increased STT: Deepak Shenoy

The Budget 2026 hike in Securities Transaction Tax is expected to reduce arbitrage fund returns by about 0.5% next year, according to Capitalmind’s Deepak Shenoy. While retail investors may see limited impact, arbitrage funds and foreign portfolio investors could face higher costs in futures trading.