BSE URGES GOVERNMENT
To attract more investors into the stock market, leading
bourse BSE has pitched for reduction in securities transaction tax and
rationalise the taxation norms for different financial products -- a demand
also made by Sebi and other market entities. BSE has written to the government
seeking rationalisation and reduction in STT. "For us if you cannot reduce
the STT overall, then you have to restructure STT to basically reduce it for
delivery transactions," BSE's Managing Director and Chief Executive
Officer Ashishkumar Chauhan said here today. According to him, STT should be
reduced for delivery transactions as it would also help in attracting
investments. Chauhan said that at present, the tax is "lowest on options
and highest on delivery transactions". So, effectively the tax policy
itself seems to promote the derivatives transactions, he added. "Currently
it is Rs 20,000 a crore... Rs 10,000 a crore on the buy (side) and Rs 10,000 a
crore on sell (side) if you deliver the shares. "It is almosty 20 times
higher than intra-day trading or future trading or probably 1,000 times higher
than the options trading," he said. He was speaking at a conference organised
by industry body Assocham. The National Stock Exchange (NSE) has also put
across similar demands with regard to STT. Meanwhile, many listed entities have
made representations to the exchange with respect to the new companies law,
including provisions related to independent directors. "Many of the
(listed) companies have written to the BSE that some aspects of the new
companies law should be relooked into. It is a sort of situation where
(companies want to know) how to comply with the Companies Act," Chauhan
said. Under the Companies Act, 2013 -- whose many provisions have come into
force from April 1 -- there are strict disclosure norms and compliance
requirements.
No comments:
Post a Comment