TaxTMI 
TaxTMI 
Securities lending scheme of Securities and Exchange Board of India
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....rove the liquidity in the stock market, facilitate the timely settlement of transactions in securities and help in correcting the temporary imbalances in supply and demand in the stock market, a securities lending scheme has been framed by the Securities and Exchange Board of India (SEBI). The scheme has come into force with effect from the 6th February, 1997. 2. The scheme would permit the lendi....
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....rrower who will be entitled to deal with or dispose of the securities so borrowed. The lender shall be entitled to receive, in consideration for the lending of the securities an agreed amount of fees for depositing the securities for the specified period. The agreements between the approved intermediary and the lender or borrower as the case may be shall provide for the following terms and conditi....
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....f an obligation when another thing of the same or another class may be delivered in lieu of it". One share of a company is good replacement for another share of the same company. The market does not lay any emphasis on the distinctive numbers. It is only for the purpose of reckoning the holding period of any particular share or to distinguish between an original share and a bonus share, that the I....
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....47) of the Income-tax Act. The meaning of the word "exchange" necessarily involves exchange of two different assets. The asset received back in the aforesaid type of transaction is no different from what was lent so long as it represents the same fraction of the ownership of the company. At no stage, the lender or borrower intended to "exchange" different assets. Hence, the transaction of lending ....