Securities lending not treated as transfer under income-tax law, preserving non-capital-gains treatment under the SEBI scheme for lenders. The scheme permits an approved intermediary to lend deposited securities to a borrower for a specified period while title rests with the borrower and the lender receives fees; agreements must cover period, fees, collateral, return and dispute resolution. Because shares of the same company are fungible, receiving back an equivalent number of shares (even with different distinctive numbers) does not constitute an exchange of different assets and therefore does not amount to a transfer under the Income-tax Act for capital gains purposes.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Securities lending not treated as transfer under income-tax law, preserving non-capital-gains treatment under the SEBI scheme for lenders.
The scheme permits an approved intermediary to lend deposited securities to a borrower for a specified period while title rests with the borrower and the lender receives fees; agreements must cover period, fees, collateral, return and dispute resolution. Because shares of the same company are fungible, receiving back an equivalent number of shares (even with different distinctive numbers) does not constitute an exchange of different assets and therefore does not amount to a transfer under the Income-tax Act for capital gains purposes.
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