‘Keep STT on equity cash market lower than F&O’
They also suggested to the ministry that in case of a buyback of shares, tax should be imposed only on profits and not on the total buyback value, sources said.
Currently, STT in the equity cash market ranges from 0.025% to 0.1% while in the derivatives market the rates are between 0.125% and 0.1%.
A lower rate in the cash segment could lead to more participation in the segment compared to the derivatives section.
Of late, govt, policy makers and regulators are looking at ways to rein in trading and speculative habits of retail investors using equity derivatives products, especially options.On Tuesday, the group of people also suggested to the finance minister that the rate of short-term dividend tax which domestic investors pay should be in line with what NRIs pay.
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