BSE asks stock brokers to remit excess STT to govt within 15 days

The move follows a circular issued by additional commissioner of income tax drawing attention towards excess securities transaction tax collected by some brokers and sub-brokers, which is not being remitted to the government's account.

"As per the IT circular, trading members who have collected excess STT and retained with them for financial year 2015-16 and preceding years as on March 31, 2016 are required to remit such excess STT directly to the government account," Bombay Stock Exchange said in a circular dated November 23.

It also said that "details regarding the same (excess STT) should be intimated to the office of the additional commissioner of income tax within 15 days from the date of this (Bombay Stock Exchange) notice".

The additional commissioner of income tax in his circular has stated that instances had come to his notice "that at times, excess securities transaction tax is collected and retained by some of the brokers/sub-brokers and the same is not remitted to the government account".

New Delhi: A prominent stock brokers' group has raised concerns about the NSE asking investors not to keep funds and securities idle with trading members, saying such messages are "counter-productive" and create distrust about brokerages.

The Association of National Exchanges Members of India (Anmi) has called on the NSE to immediately modify the message, following which the exchange has "reworded" its 'investor alert' and dropped the contentious part.

The NSE's new modified message being sent to clients reads: "As a prudent practice, you are advised to settle funds/securities on monthly/quarterly basis with your broker."