More than five thousand jobbers keep away from market

Mumbai, Apr 1 (UNI) More than five thousand jobbers and arbitrageurs today kept themselves away from the equity market, expressing their protest against implementation of securities transaction tax (STT), as an additional tax on short term transactions.

Addressing a press conference here, Association of NSE Member of India (ANMI) Chairman Rajesh Baheti said the arbitrage business would be impacted badly by this STT, as it will be an additional burden of indirect tax. ''For a single trade, we would have to pay five indirect taxes including service tax, stamp duty, transaction as well as registration fee to SEBI and at last income tax,'' Mr Baheti said.

The association was willing to call attention of the government and the market regulator and submitted a memorandum that this initiative of the government will hamper the local arbitrage business of the country, which accounts to nearly 40 per cent of a day's trading.

''Presently, we hope that the government will recognise that there is a serious problem with introduction of STT. The trade volume will come down as the brokers will take a back seat in trading, if they would have to pay more than what they earn,'' Mr Baheti added.

Dina Mehta, Director, Asit C Mehta Stock Broking, and former member of the Code of Ethics Committee of the Securities and Exchange Board of India (SEBI), said, ''It is purely a double taxation imposed on the brokers, which cannot be justified.'' Nearly 40 per cent of the volume in the market is generated by arbitrageurs and jobbers and if they withdraw, there will be a serious impact on the market, Ms Mehta added.

UNI PP SR AG2002