Brokers to approach HC over STT on physically-settled derivative contracts

NSE decided last month to levy STT at 0.1% on derivative contracts of stocks that are physically settled

Stockbrokers are approaching the Bombay High Court to seek a resolution on the impasse surrounding the levy of securities transaction tax (STT) on physically-settled derivative contracts. 

The brokers' lobby, Association of National Exchanges Members of India (Anmi), had recently moved the Securities Appellate Tribunal (SAT) to provide clarity on the issue.    

Currently, there is no provision in the Finance Act to tax derivative trades on physical delivery and Anmi believes that any attempt to collect the same by the National Stock Exchange of India (NSE) upfront shall become an illegal act.

In a letter to the