Finance ministry accepts select panel views on derivatives bill

Finance ministry accepts select panel views on derivatives bill

Santanu Saikia

New Delhi, Apr 25: The finance ministry has accepted the recommendations of the Parliamentary Standing Committee on amending certain provisions of the derivaties bill. Accordingly, a note incorporating the modifications in the Bill is being moved for approval of the Union Cabinet.The ministry has agreed that the threshold limit for transactions in derivaties should be pegged at not less than Rs 2 lakh. This is being done to ensure that the small investor does not get caught up in the intricate web of derivaties trading where large volumes of funds can move swiftly from one account to the other.The ministry is also favourably inclined to exempt derivaties trading from stamp duty, if the Cabinet so desires. Though, at the behest of the department of revenue, it has listed out the loss in revenue as a result of the exemption, the ministry has left a decision to this effect on the Union Cabinet.

The ministry is also in agreement with the Parliamentary Committee's views that stock exchanges should be the pivotalinstitutional framework under which derivatives trading should take place.

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