In order to develop the capital markets, the members of the Securities and Exchange Board of India (Sebi) have suggested a phased reduction of the securities transaction tax (STT). The STT removal is considered necessary to improve the retail participation in the capital markets by reducing the transaction costs, sources close to the development said.
In line with this, they also said that the regulator had proposed that the losses incurred in currency derivatives be treated as business losses and not speculative losses.
Moreover, Sebi has also suggested that the investments in real estate mutual funds by the retail as well as institutional investors should be given tax benefits for the development of the sector and the fund. Similarly, it was suggested that provident funds as well as pension funds be given tax benefits to invest in mutual fund units.
STT is a tax imposed on the sale and purchase of securities, which can be shares, derivatives or units of mutual funds traded on a recognised stock exchange.
In line with this, they also said that the regulator had proposed that the losses incurred in currency derivatives be treated as business losses and not speculative losses.
Moreover, Sebi has also suggested that the investments in real estate mutual funds by the retail as well as institutional investors should be given tax benefits for the development of the sector and the fund. Similarly, it was suggested that provident funds as well as pension funds be given tax benefits to invest in mutual fund units.
STT is a tax imposed on the sale and purchase of securities, which can be shares, derivatives or units of mutual funds traded on a recognised stock exchange.
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