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<h1>Securities Transaction Tax applies to equity, fund, derivative and specified transfers; purchaser or seller pays depending on transaction and settlement</h1> A securities transaction tax is levied on specified taxable securities transactions at rates set in the statute's table and is payable by the purchaser or seller as indicated. The charge applies to purchases and sales of equity shares, units of business trusts and equity-oriented funds, derivative transactions (options and futures), sales to mutual funds, transfers to insurers, and specified unlisted offer sales. Applicability depends on execution on a recognised stock exchange and whether settlement is by actual delivery or otherwise; rates vary by transaction type and settlement method and have been amended over time.