New: Budget 2013-14 - 1. Proposal to introduce Commodity Transaction Tax (CTT) in a limited way. CTT applicable on the sale of commodities. Agricultural commodities will be exempted. CTT shall be at the rate of 0.01% on the value of transaction and the tax shall be payable by the seller.2.No change in the normal rates of 12 percent for excise duty and service tax.3. Excise duty on SUVs increased from 27 to 30 percent. Not applicable for SUVs registered as taxis.4.Proposals to levy Service Tax on all air conditioned restaurant.5.Additional deduction of interest upto 1 lakh for a person taking first home loan upto 25 lakh during period 1.4.2013 to 31.3.2014 (Total 2.5 lacs) Budget 2013-14!!!

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Friday, March 8, 2013

What is Trade to Trade Settlement System?

A Trade to Trade settlement system is such that delivery is absolutely mandatory. 

Day-trading (intra-day buying and selling) is not encouraged in stocks that are in trade-to-trade segment.

If you sell shares (from your demat account) that are under trade-to-trade transaction & buy them back later on the same day, then the investor in such a case has to give delivery for the shares sold. 
However, a day later, the investor shall get delivery of the shares bought which clearly signifies that each trade is separate.

If you do not have shares in your demat account, you cannot sell them. This is because you have to give delivery. The shares that you buy, come into your demat account after a couple of days; thus you cannot sell them on the same day.

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