A significant reduction of 20% in Securities Transaction Tax ( STT ) on delivery based cash transactions will provide relief to investors in capital markets to large extent.  The investors in capital market are benefited as Finance Minister has reduced STT from 0.125% to 0.10% on cash delivery transactions.

Reduction in STT will enable more and more small investors to invest in the capital market. This will also help to reduce the transaction cost. The proposed amendments will be effective from 1^st July, 2012 and will accordingly apply to any transaction made on or after that date.