I-T Asks Bse Brokers To Give Deal Details

In a significant move the Income-Tax department yesterday issued notices to all BSE brokers asking them to provide transaction details of all trades above Rs 5 lakh in the period April 1997 to March 1998.

The notice calls upon them to furnish all transactions details, including client details, amount transacted, the name of the scrips and name of sub-brokers involved if any. This is for the first time that the I-T department has sought transactions details from brokers.

The department has also directed them to provide the same deatils every month, commencing April. The BSE brokers have been asked to provide these details on a floppy.

According to the BSE brokers, the step is being taken in an effort to weed out the possibility of black money entering the capital markets, specially through badla financing operations. Also, there is a move to set up a comprehensive databank, sources said.

The move holds significance in wake of the recent VDIS plan under which the broker contribution was in the range of Rs 100 crore. The BSE brokers have often come under attack from the tax authorities and four brokers were raided a few months ago. The notice issued has not specified whether these details should be provided only for delivery-based transactions or even for carry forward and speculative trades as well.