On October 1, 2004, the Securities Transaction Tax (STT) came into implementation in the Indian financial markets. The market players and analysts who had predicted that the introduction of STT would bring Indian financial markets to a standstill have been proved completely wrong. On the first day of the implementation of the STT, not only the Sensex (India’s most popular stock index) witnessed an increase of 91.93 points (highest since the introduction of STT was announced by Finance Minister…