Despite a flurry of initial public offerings (IPOs) hitting the market this fiscal, collections from the Securities Transaction Tax (STT) have remained virtually flat, indicating that secondary market trading volumes have not kept pace with the primary market boom.
According to CBDT data, STT collections stood at Rs 35,682 crore as of Nov. 10, 2025, marginally lower than Rs 35,923 crore collected during the same period last year. This suggests that while investor interest in IPOs has surged, overall turnover in the broader equity market has been subdued amid a largely sideways movement in benchmark indices.
In contrast, net direct tax collections — which include personal income and corporate taxes — rose 7% year-on-year to Rs 12.92 lakh crore, driven mainly by stronger non-corporate tax inflows and lower refunds.
Tax experts said the flat STT numbers underline that most of the market action has been concentrated in the primary market, while secondary market trading volumes have stagnated.
“STT collections have largely been flat — reflecting the sideways movement of the indices. Given the IPO expansion, there is potential there for more growth,” said Rohinton Sidhwa, Partner, Deloitte India.
The muted STT growth comes even as FY26 has seen one of the busiest IPO calendars in recent years, with several large issues drawing strong investor response. Analysts said sustained listing activity and post-listing trading could boost STT collections in the second half of the fiscal.
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