BSE Forum seeks industry status for stock broking
The BSE Brokers Forum has called upon the government to give industry status to stock broking and implement tax reforms in order to attract more investors and strengthen the business. “The stock broking fraternity, once given industry status, would ensure access to bank funding, which would ensure that they are able to expand their business in more cities,” BSE Brokers Forum said in its pre-Budget memorandum. “This would create more jobs and in turn, would develop the equity cult in the economy,” it said. It noted that the India broking sector has more than 1,400 brokers in BSE and NSE and more than 50,000 registered sub-brokers providing employment to about 10 lakh people. The forum has also asked for a rebate in respect of securities transaction tax (STT). “This would result into government continuing to get STT and at the same time, the burden of tax on the investors being reduced,” it said. Moreover, the group has sought exemption to commodities transaction brokerage from TDS as well as lowering of dividend distribution tax.