Does SEBI have a proper justification for different STT levied for different trades?
One thing I really don’t understand is investor is the one who is trusting the stock market and he is being slapped to pay 20 times more STT than a trader.
Any reasonable reason for such a heavy STT on delivery trades? Also I tried to find the STT for delivery trades on NSE and couldn’t find the same.
STT has nothing to do with SEBI, STT is levied by the Central Govt.
Yes, it is high and can hurt full time day traders, but frankly, if you are doing delivery based trading (IMHO), it should not hurt much. I’m saying this because, since delivery traders hold positions overnight, they target a higher return. Given this a small STT should not hurt. For example, a delivery turnover of Rs.100,000/- you’d end up paying around Rs.100/-.
@Karthik : My point is in the below screenshot.
Investment can also be done via futures by rolling over your contracts to next months if required.
But see the huge difference in STT.
Also to trade in futures margin required is very less when compared to buying the shares outright.
STT is absolutely an unfair practice in India. It’s too high for delivery. What value addition is the government giving here? We are anyway paying capital gain tax for short term. Also, the mess with F&O STT on expiry day for buy trades I think we all should write to the regulatory to fix these long pending STT issues.
What do you all feel? Pls send relevant contacts/ email ids if anyone has so that we can raise our voice…
justification for different STT levied for different trades?
Assume Both an average Investor and an average Trader have Rs.100000 each in their account,
a Trader would take 10-25 times Margin (MIS,CO,BO)and takes 4-5 trade/day, which comes to crore+/day turnover and the STT payable comes around Rs.100-200 the expected profit would be very minimal compared to investor.
An Investor buys stock worth Rs.100000 and sells after few days STT comes around Rs.200
If at all a trader were charged equal to the investor then there wont be any trader left . Liquidity will reduce drastically in the market.
in Broader sense STT Itself not justifiable. A person should be Taxed on Profit (Income) he made not on an action he takes.