ASSOCIATION OF NATIONAL EXCHANGES MEMBERS OF INDIA Vs. SECURITIES AND EXCHANGE BOARD OF INDIA AND OTHERS

JUDGEMENT

(1.) Petitioner has approached this Court being aggrieved by the communication dated 17th July, 2018 issued by Respondent No. 2 - National Stock Exchange of India Limited.

(2.) By the said Circular, Respondent No. 2 had informed the members of the Petitioner - Association that Respondent No. 2 has decided to levy Securities Transaction Tax (hereinafter referred to as "STT") at the rate of 0.10% (i.e. the rate applicable for taxable securities transaction settled by actual delivery in the CM segment) on the settlement price to be paid by the purchaser of the futures contract which are settled by way of physical delivery. The Circular also provided that, in the event if the CBDT issues any clarification or amendment in this regard in addition to or contrary to the above position, Respondent No. 2 had reserved the right to recover such additional STT from the members effective from the date as may be notified by the CBDT.

(3.) It was the grievance of the Petitioner that there was some anomaly with regard to STT payable on future transactions. It was their grievance that, in the event, CBDT in future comes with a policy that rate of STT on such transaction is higher than what is provided in Circular dated 17th July, 2018, the members of the Association would be put to great prejudice inasmuch as they would not be in a position to recover the said STT from the parties whose transactions were already over.