Off-market deals under scanner

Sebi asked to provide details of such transactions for FinMin and tax department to study them

The finance ministry has sought an “exhaustive list” of wide-ranging off-market transactions from the Securities and Exchange Board of India, to decide whether investors have to pay long-term capital gains (LTCG) tax under a new rule.

The proposed clause in this year’s Budget says those who acquired shares in unlisted companies after October 1, 2004, will have to pay LTCG if they hadn’t paid securities transaction tax (STT) at the time of purchase. At present, STT is not paid when shares are acquired in off-market transactions such as mergers and acquisitions, qualified institutional placements or private equity investments in unlisted