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ANMI requests Finance Ministry to carry out urgent tax reforms

–         At its 9th International Convention, submits a six-point manifesto to the ministry to catalyze growth of capital markets

–         Also identifies new frontiers of growth for financial services amid a changing regulatory environment: ANMI

 by Suman Gupta

 Mumbai, November, 2017: Association of National Exchanges Members of India (ANMI) has drawn up a five-point agenda for the Ministry of Finance’s (MoF) consideration that would catalyze the development of the entire Capital Market ecosystem and unlock the full potential of the markets.

At its 9th International Convention held in the city today on the theme of ‘’FINANCIAL INCLUSION- EXPANDING THE HORIZONS, ANMI urged the Finance Ministry to take action on the following five points included in the manifesto:

  • Allow a rebate on the Securities Transaction Tax (STT)– STT has impacted volumes and revenue generation and escalated cost of transaction for clients
  • Abolish taxation of dividend {Dividend Distribution Tax (DDT)}– DDT has discouraged dividend distribution and impacted investors’ confidence
  • Amend Section 14A, Rule 8(d), which seeks dis-allowance of expenses, thereby making dividend income inconsequential–   Inclusion of divided into ‘exempted’ income is misleading and untrue as dividends are already taxed by DDT
  • Streamline requirements of GST for intermediaries, including the rates which have been creating a tremendous burden on the financials of intermediaries– Market Intermediaries like a Sub-Broker and an Authorized Person should be exempted from registration under GST as they do not raise any invoice on the Clients and/or total obligation from clients including GST which is paid by the broker
  • Provide ‘industry’ status for the Broking business– The stock broking community is the backbone of the Capital Market of the country. The number of people employed in the Stock Broking business across the country runs in millions
  • Re-introduce Section 88E

The ANMI convention was attended by heads of exchanges and around 400 brokers. Smt Arundhati Bhattacharya, former Chairman, SBI was the chief guest on the occasion and the chiefs of all the premier national Stock Exchanges were the guests of honour.

Discussions at the convention centred around four focus areas – identifying new frontiers of growth, use of technology for complete financial inclusion, country’s tax laws and compliances for ease of doing business and value investing for wealth creation.

In his welcome address, Mr. K Suresh, President of ANMI, pointed out the need to focus on facilitating the access of useful and affordable financial products & services beyond just banking services – which includes transactions, payments, savings, credit and insurance – to all individuals and businesses.

“The cause of financial inclusion can be truly realised only if the masses have access to the full range of financial products, and not just banking services.  The need of the hour is to channelize small savings, like the amount lying in the Jan Dhan Yojna accounts into appropriate financial products, which would not only fire up the agenda of financial inclusion but also strengthen India’s capital market,” said Suresh.

The exchange partners of the convention for this year were Bombay Stock Exchange (BSE), Multi-Commodity Exchange (MCX), Metropolitan Stock Exchange (MSEI) and National Stock Exchange (NSE).

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