ANMI has also urged the Centre to abolish the dividend distribution tax (DDT) and asked for reinstatement of Section 88E of the I-T Act, which allow brokers to subtract the STT amount from the overall tax liability.
The Association of National Exchanges Members of India (ANMI), a pan- India trade body representing brokers from the National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE) and other exchanges having national presence, has sent a wish list to the finance ministry to realise its full potential and accelerate the growth of the capital market ecosystem, reports Business Standard.
The points were put forward during the ninth international convention held in Mumbai, as per the newspaper.
They have asked for a discount on the securities transaction tax (STT) which has affected volume due to higher transaction cost – helping to increase the retail participants’ base in the securities markets.
Ashishkumar Chauhan, Managing Director and CEO of BSE told Business Standard the business has slowed down with the introduction of STT and without brokers, an exchange will not survive.
ANMI has also urged the Centre to abolish the dividend distribution tax (DDT) and asked for reinstatement of Section 88E of the I-T Act, which allow brokers to subtract the STT amount from the overall tax liability.The industry lobby further stressed on the need to facilitate easier access of affordable financial products and services to masses and businesses, rather than just bank services.