Securities lending: fungible share returns do not constitute 'transfer' for capital gains purposes under income tax law.

The Securities Lending Scheme allows an approved intermediary to accept securities from a lender and lend equivalent securities to a borrower under separate agreements, with title resting with the borrower and the lender receiving an agreed fee; agreements must address period, fees, collateral, return (including premature return), and arbitration. Because shares are fungible, receiving equivalent shares of the same company with different distinctive numbers does not constitute an exchange of different assets and thus does not amount to transfer under section 2(47) of the Income-tax Act for capital gains purposes.

---

---

---