Would selling ETF holdings and buying them back on different exchange be considered intraday transaction?

Taxation
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Let’s sat the following transactions are made:

Dec 31 Sell LIQUIDCASE x100 at 100 in NSE
Dec 31 Buy LIQUIDCASE x100 at 100.01 in BSE

I’ve read about Interoperability. It seems the transaction would be netted off at the CC level.

Would the ETF move or move in out of my demat account? Because, If it doesn’t, I think it’ll be classified as intrafay transaction and speculative business income provisions may apply.

I’d like to book profits this FY and also carry forward the position. Is this possible at all without doing STBT, in which case, I believe the transaction would happen at demat level and therefore the profits are booked.

  1. Am I right in assuming STBT trades are delivery based?
  2. Is this possible with another broker with a different demat perhaps? Circular : No. 768, dated 24-6-1998 seems to suggest this.
  3. Is there any other options I’m missing?

Any clarifications is welcome.

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Cc: @Quicko

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Selling on NSE and buying on BSE or vice versa will lead to an intraday settlement and demat holdings remain untouched unless security is settled trade to trade (T2T). ETF’s are mostly not T2T.

  1. Yes, in STBT there will be debit and credit of stocks in demat.
  2. Yes, since you do FIFO based on demat.
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Thanks.

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Better to do BTST. You will atleast not miss a huge gap up move