SEBI Clarifies Securities Transaction Tax And Settlement Rules

The Securities and Exchange Board of India (SEBI) has issued a clarification on taxation and settlement procedures in the securities market. The announcement aims to provide transparency and stability for investors, custodians, and foreign portfolio participants.

Taxation Framework

SEBI stated that securities transaction tax (STT) and stamp duty will continue to be levied on a delivery basis. This ensures uniformity in charges and aligns with existing practices, minimizing confusion for market participants.

Settlement Process

The regulator also confirmed that settlement of securities will continue to be carried out on a gross basis between FPIs and custodians. This approach reinforces accountability and reduces risks in cross-border transactions, maintaining confidence in India’s capital markets.

Key Highlights

• SEBI confirms STT and stamp duty on delivery basis
• Settlement of securities to remain on gross basis
• Clarity provided for FPIs and custodians
• Ensures transparency and consistency in market operations
• Supports investor confidence in Indian capital markets

Sources: Reuters, Economic Times, Business Standard