Speculative transaction definition excludes hedging, dealer/investor trades, jobbing/arbitrage and recognised exchange derivative trading. A transaction is a speculative transaction if a contract for purchase or sale of any commodity, including stocks and shares, is settled otherwise than by actual delivery or transfer. Excluded are hedging contracts in raw materials or merchandise entered in the course of manufacturing or merchanting business, dealer or investor contracts in stocks and shares to guard holdings, jobbing or arbitrage contracts by exchange members, eligible derivatives trades on recognised stock exchanges, and eligible commodity derivatives trades on recognised exchanges (with a specific clarification for agricultural commodity derivatives).
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.
A transaction is a speculative transaction if a contract for purchase or sale of any commodity, including stocks and shares, is settled otherwise than by actual delivery or transfer. Excluded are hedging contracts in raw materials or merchandise entered in the course of manufacturing or merchanting business, dealer or investor contracts in stocks and shares to guard holdings, jobbing or arbitrage contracts by exchange members, eligible derivatives trades on recognised stock exchanges, and eligible commodity derivatives trades on recognised exchanges (with a specific clarification for agricultural commodity derivatives).
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