Is it permitted to sell share in one account and buy it back in other demat account same day

Taxation
1

Suppose a person has 2 demat accounts (with diff brokers). Can they sell their equity holding in 1st broker and buy back the same shares in 2nd broker on same day. Will it cause any penalties or flag the system or trigger RTCM or attract suspicion from tax department etc ?

Objectives could be anything , liquidity requirements, taxation, clean up of portfolio , psychological boost by removing loss making stocks, etc.

2

One can do this, no problem.

3

Out of curiosity , is it considered intra day by any chance or these transactions are seen per broker/demat account independently ?

Thank you.

1 Like
4

Yes.