- Security Transaction Tax (STT) was first introduced in the Union Budget 2004.
- The idea of STT was born after it was found that there were cases of capital gains taxes evasion through real and fictitious losses. Thus, STT came into being as a way of realizing the actual potential of taxing the stock markets. So, while long-term capital gains (LTCG) tax was exempted, STT was introduced to make sure there was no tax evasion. And then, LTCG too made a comeback in 2019.
Soft underwriting happens when an underwriter agrees to buy shares in an IPO at a stage after the issue is closed. He, then, immediately places those shares with institutional players. Thus the risk faced by the underwriter is reduced to a small window of time. Continue reading “Soft Underwriting”
Insider trading refers to the trading of securities while in possession of Unpublished Price Sensitive Information (UPSI) about the particular securities.
- Under the new framework, it would be mandatory to disclose the source of information, besides, confidentiality regarding the identity of the informant would be protected
- SEBI said the reward would be given in case the information provided leads to disgorgement of at least Rs 1 crore in accordance with the PIT (Prohibition of Insider Trading) Regulations