SHORT SELLING TO TAKE OFF SANS TAX CRAMPS

Short selling of securities on the stock exchanges, a market reform long promised by the
finance ministry and SEBI, is set to debut. The Centre has clarified that lending and borrowing of
securities under this scheme will not attract securities transaction tax or capital gains tax. But it is unclear if sale and repurchase deals made on the basis of borrowed securities would be taxable. As per Central Board of Direct Taxes (CBDT), lending and borrowing of securities under the new scheme notified by capital market regulator SEBI will not be subject to taxes.