Section 43(5)(ii) of the Income-tax Act, 1961 notifies NSE and BSE, Mumbai as recognised Stock Exchange - 002/2006 - Income Tax

Recognition of stock exchanges enables derivative trades on specified exchanges to be treated as non-speculative under tax rules.

Notification designates the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited as recognised stock exchanges under the Explanation to clause (d) of the proviso to section 43(5) of the Income-tax Act, 1961, so that eligible transactions in derivatives carried out on these exchanges shall not be treated as speculative from the date of notification; recognition is subject to conditions in the Income-tax Rules and may be withdrawn if those conditions are violated.