Section 297

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Raghupathy M (Querist)
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12 February 2009 Ours is a share broking company and our directors and the pvt companies in which they are directors are dealing with our company as clients. Orders are placed for purchase and sale of securities placed only at prevailing market price on day today basis and not for contractual basis and the brokerage charged as per SEBI norms as charged to the unrelated parties( Clients). Will it attract section 297?. Pl clarify.

Jagruti (CS)

Jagruti (CS) (Expert)
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12 February 2009 As per Sec. 297 (2)(b), it will not apply only if the transaction value should not exceeds Rs. 5000 in aggregate in any year.

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Raghupathy M

Raghupathy M (Querist)
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08 April 2009 sir

Kindly let me know, whether the transaction value is brokerage charged to the client or the volume of business done by the client? pl clarify.

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