2nd January 2010, 01:21 PM
STT on Options
I found that STT charged on option is as below
In case of selling, the STT is 0.017% on premium
If exercised, 0.125% on settlement value
Premium is much less than settlement value. For example, If I sell a RIL CA-1050 option(Market lot 300) for premium at Rs 40 on 31st Dec.
My STT would be 40 * 300 * 0.017 = Approx Rs 2.
If I would exercise the same option at approx same price my STT would be
1090 * 300 * .125 = Approx 408.
Both the things means same to seller, But there is so much difference in STT.
Any reasons? Is this an unintentional mistake by govt?