The government announced the decision in parliament on Sunday, saying the tax hike was aimed at curbing high-risk speculative trading in the options market
SEBI chairman Pandey called for collective action. He said, regulation alone cannot build a market. The next phase depends on issuers, investors, intermediaries, stock exchanges, and regulators moving together.
The proposal was under consideration since February 2024, was delayed due to concerns from some stakeholders.
The exchange may target the filing of the DRHP by March-end, based on the September quarter audited numbers.
Fund managers like S Naren defended the move by saying speculative trading can't create long-term wealth
Budget proposes to increase STT on futures from 0.02 percent to 0.05 percent. Also, the STT on options premium and on options exercise has been hiked to 0.15 percent. The existing STT on the premium is 0.10 percent and on options exercise is 0.125 percent.
The move is expected to encourage investor to go for long term investment instead of intra-day trading.
Finance Minister Nirmala Sitharaman proposed to increase the STT on Futures from 0.02 percent to 0.05 percent, while hiking the STT on options to 0.15 percent.
Spot gold was 2.1% higher at $5,514.03 an ounce by 08:52 a.m. ET (1352 GMT), after earlier touching $5,594.82. Gold has gained over 28% so far this month.
More than 300 shares in the S&P 500 advanced, but the gauge lost steam as most megacaps retreated
Economic Survey calls for expanding the investor base through targeted incentives, including simplified tax structures for bonds.
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GST authorities had demanded 18 percent GST on the portion of premium shared with other insurers, and commissions paid in reinsurance arrangements.
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