Long-term specified securities designation preserves capital gains exemption when reinvested into designated shares, subject to holding-period recapture. The Central Board of Direct Taxes designates equity and preference shares to be issued by M/s Reliance Salgaocar Power Company Limited as long-term specified securities under section 54EA, applicable to shares issued within one year and subject to the notification's issuance limits. Investment must be made out of net consideration from transfer of a long-term capital asset. If the allotted specified shares are transferred or converted within three years of allotment, the initial investment becomes chargeable to tax under the head 'Capital Gains'.