BSE proposes new transaction tax structure in capital markets

BSE proposes new transaction tax structure in capital markets - Economic Times
Page 1 of 2
Log In / Join
Indiatimes The Times of India The Economic Times More
FOLLOW ET:
LATEST MARKET NEWS
10:18 AM: Crude oil down almost 10 per cent in 2 days as hunt f...
10:18 AM: Sell Bharat Forge Ltd with a target Rs 850: Mitesh Th...
News
Home
News
10:16 AM: Buy Adani Enterprises Ltd with a target Rs 535: Mites...
Markets
Recos
10:30 AM | 07 Jan
Stocks
Earnings
Live
MARKET STATS
IPOs/FPOs
Announcements
SENSEX
27,012.72
Market Stats Live
Policy
Technicals
Market Calendar
NIFTY
25.26
8,138.85
11.50
Commodities
Forex
Markets under pressure due to falling oil prices


Vineet Bhatnagar
PhillipCapital
Bonds
Money Markets
Definitions
Stock Quotes
GOLD (MCX) (Rs/10g.)
USD/INR
27,290.00
63.4
-104.00
LOGIN to Track
your Investments
-0.18
You are here: Home > Collections > Securities Transaction Tax
BSE proposes new transaction tax
structure in capital markets
PTI Jan 5, 2015, 03.41PM IST
Tags: stocks
|
sebi
|
Ministry of Finance
|
Equity market
|
corporate bonds
|
BSE
NEW DELHI: Pitching for a slew of reforms in the Indian
capital markets, leading bourse BSE has suggested the
government bring in a new transaction taxation structure
and besides seeking tax pass through status for
Infrastructure Investment Trusts (InvITs).
RELATED ARTICLES
Budget 2013 looks to attract more investors to
stock market
As per the stock exchange, Securities Transaction Tax
(STT) on equities, which is basically for investment need,
should be made the lowest, while the same should kept
higher for the derivative trades.
February 28, 2013
Government moots smoother foreign investment
norms for REITs
Top 10 Stocks to Buy
Now
Buy 1 BHK Flat in
Noida
1 Crore Term
Insurance
November 28, 2012
stockaxis.com/m/Multibagger-Stocks
indiahomes.com/Resale-Property
hdfclife.com/Click2Protect_Plus
IN-DEPTH COVERAGE
100-150% target return in 1-1.5yrs
For Free Trial Call 9773061000
Search Flats Within Your Budget.
Choose From Over 1 Lac Listings.
Affordable Term Plan with Extra
Life Option* and Accidental
Cover.
December 30, 2014
BSE appoints panel to select i-bankers for IPO
Securities Transaction Tax
SPOTLIGHT
Pure politics
Further, it has suggested that the transaction tax norms be made applicable across asset classes like stocks,
non-agricultural commodities and currency derivatives.
In essence, a new transaction tax structure needs to be put in place to ensure there is no tax arbitrage across
asset classes, BSE has suggested to the Ministry of Finance.
Meanwhile, the bourse feels that the tax should be a pass through in case of an InvIT and should be
chargeable only in the hands of the unit holders.
In September, 2014, market regulator Sebi had notified the norms for listing of InvITs, that would help attract
more funds in a transparent manner into the infrastructure sector.
Meanwhile, among other measures, BSE also suggested that government compulsorily introduce 'market
making' for all illiquid scrips to protect investors interests.
AP CM Naidu stirs up a storm with
new land pooling model
Andhra Pradesh CM Chandrababu Naidu is
crafting a new land pooling model, claiming it is
better than the Central framework for land
acquisition.
◾ Arun Jaitley says states can ignore land
ordinance at own cost
◾ Changes in land laws balance development,
compensation: FM
Aimed at infusing liquidity in securities that are not frequently traded on bourses, market making is when an
entity stands ready to buy and sell a particular stock on a regular and continuous basis at a publicly quoted
price.
BSE has suggested that market making be made permanent in the SME segment of the bourses and should
also be introduced for corporate bonds as well as currency derivative trading.
Moreover, BSE wants that the pension funds in India be allowed access to the equity market, both primary as
well as secondary, to enable them to participate in wealth creation for the companies and the investors of the
fund.
In India, pension funds currently constitute over USD 80 billion of funds. Currently, the pension funds are
allowed to invest only in debt securities, including short term bills.
The exchange also proposes that the government allow instruments like Third Party Warrants in the Indian
capital markets so as to enable long term investors to invest in them.
http://articles.economictimes.indiatimes.com/2015-01-05/news/57705320_1_sme-sec... 07-01-2015
BSE proposes new transaction tax structure in capital markets - Economic Times
Page 2 of 2
According to BSE, third party issued warrants provide investors a new tool for investing and managing risk.
Being retail focused investment products, specified rules are issued for the product which ensures a high level
of transparency, liquidity and protection to investors, it said.
Besides, BSE has sought a review of ownership norms for depositories wherein it wants that a stock exchange
hold 51 per cent stake in a depository from the current 24 per cent cap.
Sbi Investment Pension Plans
Free Trial Intraday Tips
pension.policybazaar.com
beststockanalysis.co.in/BSE-NSE
Invest 50,000 p.a & Get 63 Lacs Compare All Plans with
top players
Pay Only When You Make Profits 90%
Accuracy. Try It Yourself
FEATURED ARTICLES
How a two-year-old firm is
hitting a daily turnover of Rs
4,000 crore today
Top seven stocks Rakesh
Jhunjhunwala is betting on
Apple cuts online price of
iPhone 5S to clear stocks; ties
up with Amazon, Flipkart and
Snapdeal
More:
Apple cuts online price of iPhone 5S to clear
15 strategists of 2015 who are in a hurry to
stocks; ties up with Amazon, Flipkart and
usher in change
Snapdeal
Argumentative & too emotional - are Indians
India's first e-reader Wink unveiled, supporting
tough to work with?
15 languages
Fed warns of catastrophe if $14.3-trn debt
Taliban says Pakistan Army fooled youth for
limit not raised
blood game in Kashmir
Readers' opinions (5)
Sort by: Newest | Oldest
The Follower (Unknown)
05 Jan, 2015 05:14 PM
while the move seems good enough, anyloop holes should be plugged.
lalit raj (NOIDA)
05 Jan, 2015 04:28 PM
© 2015 Bennett, Coleman & Co. Ltd. All rights reserved
www.economictimes.com
Index by Date | Index by Keyword
Advertise with us | Terms of Use | Privacy Policy | Feedback
http://articles.economictimes.indiatimes.com/2015-01-05/news/57705320_1_sme-sec... 07-01-2015

Download Report