Sebi study suggests lowering of STT
Quotes

Sebi study suggests lowering of STT

Last Updated: Thursday, October 17, 2013, 19:25
 
 Comment 0
 
Sebi study suggests lowering of STT
Mumbai: A Sebi commissioned study has suggested lowering of Securities Transaction Tax (STT) to boost the capital market.

The study, conducted by independent experts for Sebi's Development Research Group, found that spot-market has been dominating the futures and option (F&O) markets and that the dominance of futures market over options has diminished after the increase in STT.

Consequently, it said, "STT on protective-put and hedged- call positions should be reduced to give boost to the option market."

STT, which was introduced in 2004, is levied on the sale and purchase of equities.

The government, in March, had lowered the STT by 20 percent to 0.1 percent from 0.125 percent, in a bid to bring down costs of equity transactions.

According to estimates, STT accounts for 51 percent of the transaction cost in stock markets.

The present study examined the impact of increased derivatives trading in India on the price-discovery process by studying F&O on NSE Nifty and 10 other randomly-selected stocks on the exchange.

The study has been co-authored by Banikanta Mishra, Sarat Malik and Laltu Pore and is part of an initiative undertaken by the Securities and Exchange Board of India (Sebi) to commission studies on different aspects affecting the capital markets.



PTI

First Published: Thursday, October 17, 2013, 19:23


Comments


comments powered by Disqus
G20 Summit 2014
G20 Summit 2014
2014`s Top People in Business: Fortune
2014`s Top People in Business: Fortune
World Bank`s Top 10 Places for Business
World Bank`s Top 10 Places for Business
India`s top ten billionaires
India`s top ten billionaires
Top 10 billionaire cities- In Pics
Top 10 billionaire cities- In Pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved