<h1>Exemption under section 10(38) now requires STT-chargeable acquisition, with limited notified exceptions for preferential, off exchange, and delisting period acquisitions.</h1> Exemption for long term capital gains on transfer of equity shares acquired on or after 1 October 2004 is available only if the acquisition is chargeable to Securities Transaction Tax; the Central Government proposes to notify that the STT condition shall not apply to all non STT chargeable acquisitions entered into on or after that date except (a) preferential issues of listed equity in companies whose shares are not frequently traded where certain ICDR provisions do not apply, (b) purchases not entered through a recognised stock exchange, and (c) acquisitions during a delisting period until relisting.