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<h1>Securities transaction tax: levy on exchange-traded equity, derivatives and fund transactions with prescribed valuation and compliance duties.</h1> Securities Transaction Tax (STT) applies to specified transactions on recognised exchanges and certain public-offer-related sales and mutual fund redemptions; off-market transactions are excluded. Taxable value rules vary by instrument: options are valued by strike plus premium, futures by traded futures price, and other securities by transaction price, with the Board able to prescribe pricing methods. Recognised stock exchanges, prescribed mutual fund persons and lead merchant bankers collect STT, must deposit it to Government by the seventh day of the following month, and must file annual returns; statutory penalties apply for failures to collect, remit or file, subject to reasonable-cause defences and hearing.