Membership right transfer in recognised stock exchange demutualisation scheme treated as non-transfer with specific cost rules. Transfer of a capital asset consisting of a membership right held by a member of a recognised stock exchange in India, when made for acquisition of shares and trading or clearing rights under a demutualisation or corporatisation scheme approved by the Securities and Exchange Board of India, is treated as a transaction not regarded as a transfer under Section 47(xiiia). The cost of acquisition of the equity shares allotted is the cost to acquire the membership right, and the cost of acquisition of the trading or clearing right is NIL.
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.
Membership right transfer in recognised stock exchange demutualisation scheme treated as non-transfer with specific cost rules.
Transfer of a capital asset consisting of a membership right held by a member of a recognised stock exchange in India, when made for acquisition of shares and trading or clearing rights under a demutualisation or corporatisation scheme approved by the Securities and Exchange Board of India, is treated as a transaction not regarded as a transfer under Section 47(xiiia). The cost of acquisition of the equity shares allotted is the cost to acquire the membership right, and the cost of acquisition of the trading or clearing right is NIL.
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