Derivatives trading classification expanded to include eligible exchange transactions for tax treatment under amended income tax provision The amendment adds clause (d) to section 43(5) to include derivatives trading on a recognised stock exchange as an eligible transaction, and inserts an Explanation: eligible transactions must be executed electronically through registered intermediaries or by banks/mutual funds on a recognised exchange and be supported by a time stamped contract note showing the unique client identity number and permanent account number; a recognised stock exchange must meet conditions prescribed and notified by the Central Government.