Prasanna (practice) (177 Points)
19 March 2010in case of an trader in securities, transaction squared off on the same day should be treated as speculation transaction or trading transaction? overall activity includes trasactions squared off on the same day as well as holding the shares for number of days.
nikhil.r.gondhalekar
(articled assistant)
(64 Points)
Replied 19 March 2010
Muthu
(Assisstant Manager)
(54 Points)
Replied 19 March 2010
Section 43(5) of the Act defines ‘speculative transaction’ as a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.
Hence intraday transaction which are not delivery based are regarded as 'speculative transaction'
Krishna
(Advocate)
(88 Points)
Replied 19 March 2010
if the actual delivery not made with in T+2 (Transaction day+2 days) then it becomes speculative transaction. So, the
squaire off can be made within two days from transaction day without delivery. It is always speculative.
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