An appeal to reduce STT.

Hi friends, by this post i make an appeal to govt. to reduce
stt, which many feel that should be reduced.

Moreover, as i trade in derivative, i personally feel that stt
should be of fixed rate and not on volume of contracts.

I hope others will join me and make a petion to FM
for the reduction of STT in the coming budget.


Thanking you,
Rajib.

STT is good Curbs excessive short term speculation and keeps CGT at bay for the genuine investor.
In fact it should be raised for i-day trading; that will also reduce the i-day volatility in the mkts.

You better get an idea about what you are talking about. Intraday trading increases liquidity which in turn curbs volatility and not the other way round.

Get a clue

CV

Volatility is curbed by the longer term investment grade money flow. The very short term highly leveraged speculative money usually has the opposite effect - intraday or otherwise. This is the real bane of our mkts. It's not just about taxation. SEBI should take other measures to curb it, specially in derivatives.

KALYAN.

i am not against STT, but the rate should be lowered
and made fixed, coz the largest poll of trader in india are
either speculator or daytrader .
if we increase the rate of stt, they will be out of the market and causing a less liquid market and less attractive oppurtunity. This in turn may cause to shut down a no. of broker and sub-broker who mainly rely on such kind of investors & trader.
also, with the coming of cheap brokers, now stt is more than brokerage, one example....
if i buy/sell a lot of nifty through reliance-broking service..
Broking-card cost=8*5=40 Rs (since there is card system)
if the trade done through, Rk global=20Rs(brokerage)
Stt =70Rs

A small investor comes here with a view to make some money,but not to make a broker crorepati on his own money and effort. it should be a win-win situation.
after all charges and brokerage , there is little gain
which in turn is cut off by huge STT.

This will only kill the small investors, traders but no effect on big funds or big investors.
In my personal opinion, all should have get the
oppurtunity to make money! not only the biggies
like FII, mutual funds, big investors etc..

Thanking you,
Rajib.

Define Volatility


CV

Don't take orders Not yours anyway.

KALYAN

So we mean to say that one element of market should subside the taxation worries of another element. Going back to socialism,eh?

Further, Whom the genuine investor will sell if the speculators will be out of market? How much liquidity the buy-and-hold type of investors can bring to the markets and when there is no liquidity in the market we all know who suffers.

I won't have been surprised if our parliamentrians would have made such statement that limiting intraday trading is beneficials for investors as they lack even the basic understanding of market and its ways but to come across such statements made by market players is really surprising.

Best Regards,
--Ashish

BUt in more mature markets there is much more (both absolutely & relatively) short term speculation than is taking place in our markets. If it's not bane for them, how it's bane for us?

--Ashish

What's stopping the small investor in remaining invested for a little longer than 1-2 days?
I think if the Short Term CGT is abolished it would benefit the small investor a lot more.
The loss to the govt exchequer can be more than compensated by raising the STT for non-delivery trade. STT is also easier & less costly to collect for the govt.

Regards,
Kalyan.