If an assessee holds derivatives as a part of his inventory, provisions of ICDS II shall apply since the definition of securities contained in ICDS VIII specifically excludes derivatives.
ICDS II applicability to derivatives: derivatives held as inventory fall under ICDS II because securities exclusion applies.
Where an assessee holds derivatives as part of inventory, the valuation and related provisions of ICDS II apply because the definition of securities in ICDS VIII expressly excludes derivatives, so such instruments are governed by the inventory valuation standard rather than the securities disclosure regime.
Note: It is a system-generated summary and is for quick reference only.