Markets welcome draft code

Financial markets have largely welcomed the draft direct code proposal for giving pass through entities status to financial intermediaries like mutual fund, venture capital fund, pension funds, superannuation funds, provident funds and life insurance companies. The draft direct code has further proposed or the removal of Securities transaction tax (STT) which is expected to reduce cost of securities market transaction and increase trading volumes, currently STT is charged at 0.125%. The draft direct tax code stated, Financial intermediaries would receive to the extent possible, income without any incidence of tax. They would also not be liable to pay any tax ...

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