Draconian Tax Will Reduce Derivative Trade Volume

[newtrader101]

Derivatives to Attract Same STT as Equities
https://economictimes.indiatimes.co...-as-in-buying-shares/articleshow/65587034.cms

 

[Smart_trade]

Derivatives to Attract Same STT as Equities
https://economictimes.indiatimes.co...-as-in-buying-shares/articleshow/65587034.cms

This high STT is only applicable when the derivative contract is settled by delivery of shares and not on all derivative contracts. Most of the stock derivative contracts are squared off and they dont result in delivery of shares.

Smart_trade

 

[traderniftybull]

and this is applicable to some 46 scrips only and not all fno scrips

 

[newtrader101]

This high STT is only applicable when the derivative contract is settled by delivery of shares and not on all derivative contracts. Most of the stock derivative contracts are squared off and they dont result in delivery of shares.

Smart_trade

Thank you for clarifying. So this will not apply if we buy futures or options NRML?

 

[traderniftybull]

nahi bhai
there are some 46 scrips (list available at nse site) which will be physically settled, if positions remained open at expiry and on such scrips STT will be charged at higher rates (something similar to what is now, if one fails to close his position on expiry)
But most of the brokers will not allow to take position about 4 days before expiry or will ask yo to sq off your position accordingly

BTW, nothig to do with NRML or MIS

 

[traderniftybull]

one thing more
one has to take or give delivery (as the case may be) of such scrip, otherwise trade will go to auction and so heavy losses to incurr