How do you think STT rates will move in the coming years?

There are two things you must remember about STT. Firstly, they are a huge cash cow and secondly they are very easy to administer. Unlike the general fears, the STT did not cause volume disruption except that market volumes have gone up manifold.

At $3 billion, government will not give it up so easily. Secondly, collecting STT is lot simpler and also more predictable compared to capital gains tax or dividend tax. One thing is clear that STT is here to stay for a long time. Remember STT will automatically grow with equity participation.