Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: VAT RATES :: form 3cd :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: cpt :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961
 Income tax returns filing: No tax on gift received from relatives in form of cash
 Income tax returns (ITR): Here is why you need to pay higher tax on other incomes
 GST Update On Issuance Of Debit Notes And Credit Notes
 How Mutual Fund Investments Can Help Save Income Tax
 Income tax returns (ITR) filing: Why small service providers need to get this benefit
 How NRIs can avoid tax troubles

Sebi seeks clarifications on short-selling tax waiver
June, 04th 2007
The Securities and Exchange Board of India (Sebi) has approached the Reserve Bank of India (RBI) and the Central Board of Direct Taxes (CBDT) for clarifications on lending and borrowing of securities under the proposed short-selling mechanism.
 
The Sebi wants such lending and borrowing not to be treated as transfer of securities and, hence, feels it should not attract capital gains tax under the Income Tax Act. Sources said the CBDT was looking into Sebi's suggestions. The introduction of short-sales, which has been cleared by the Sebi board, proposes to bring in a crucial ingredient into the market.
 
Short-selling involves the sale of shares by an investor when one does not own them at the time of trade. Short-sales will provide more depth and level playing field to all participants.
 
According to the proposed short-selling mechanism, institutional investors can sell securities even when they do not own them. But they are required to deliver the securities sold by borrowing them from the market. There will be a mechanism for lending and borrowing of securities where investors, who have securities but do not want to sell them in the near future, can lend them to those who have taken up a short position (who intend to short-sell). The investors, who lend the securities, end up earning some returns.
 
According to sources, the RBI seems to have a problem with short-selling as no foreign entity can leverage on its existing positions in the equity market under the existing Foreign Exchange Management Act (Fema).
 
In other words, a foreign entity cannot lend its securities to others and receive a monetary benefit out of it. Therefore, the Sebi has asked the RBI for necessary clearances under the Fema to allow foreign institutional investors to engage in lending and borrowing of shares for short-selling.
 
The market regulator is in favour of a full-fledged lending and borrowing mechanism, where clearing houses Bank of Indian Shareholding and National Securities Clearing Corporation will act as approved intermediaries (AI).
 
An AI is an entity registered with the Sebi with whom a lender and a borrower enter into an agreement to deposit shares for lending and borrowing during the settlement of trades. Shares of companies are the only instruments allowed for lending and borrowing.

Anindita Dey
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions