Notice on applicability of Securities Transaction Tax (STT) on trading of Rights Entitlement

• Notice No: 20200219-29
• Notice Date: 19 Feb 2020
• Category: Compliance
• Segment: Equity

Further to Exchange Notice No. 20190823-28 dated August 23, 2019, we would like to inform you that, although the rates of levy of Securities Transaction Tax (“STT”) on transactions entered into in a recognised stock exchange have not changed, it is proposed to include trades in Rights Entitlement (“RE”) under serial no. 4(a) of the table under section 98 of the Finance (No.2) Act, 2004 pertaining to “sale of an option in securities. Accordingly, STT shall be payable by the seller at the rate of 0.05% of the value at which such RE’s are traded.

All trading members are hereby informed that there is no change in the rate of Securities Transaction Tax (STT) and the existing procedures for calculation, levy and collection of STT by the Exchange shall continue.

 For further clarifications on the subject matter you may kindly contact the following officials –

Type of Query	Contact Person	Department	Direct Line	Mobile No
STT Rate	Shri Dheeraj Sisodia	Finance	022-22728647	[phone]
STT Rate	Shri Harihara Subramanian	Finance	022-22728522	[phone]
STT calculation & end-of-day files	Shri Sameer Vaze	Trading Operations	022-22728543	[phone]