DEPUTY GENERAL MANAGER
Market Regulation Department
MRD/DoP/SE/ Cir – 28 /2004
August 23, 2004
Circular in .PDF format
The Executive Directors / Managing Directors/Administrators
of All Stock Exchanges
Dear Sir / Madam,
Sub: Implementation of Securities Transaction Tax
It has been proposed in the Union Budget for 2004-2005 to levy Securities Transaction Tax (STT) on all transactions done on the stock exchanges.
As per the provisions of the Finance Bill, the stock exchanges have been entrusted with the responsibility of levy, collection and remittance of the STT on all transactions from the date of notification by the Government of India. The stock exchanges will have to ensure that necessary systems and procedures are put in place for proper implementation.
The stock exchanges are, therefore, advised to note that from the date of notification of STT by the Government of India, no stock exchange shall permit trading activity unless it implements necessary software and procedures for the levy, collection and remittance of STT and that the MDs/EDs/Administrators of the respective exchanges certify to the effect that necessary systems and procedures are in place for the said purpose.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.