ule -1, Securities Transaction Tax Rules, 2004 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

ule -1, Securities Transaction Tax Rules, 2004 SECURITIES TRANSACTION TAX RULES, 2004 NOTIFICATION NO. SO 1059(E), DATED 28-9-2004 In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 114 of the Finance (No. 2) Act, 2004 (23 of 2004), the Central Government hereby makes the following rules for carrying out the provisions of Chapter VII of the said Act relating to securities transaction tax, namely :— Short title and commencement. (1) These rules may be called the Securities Transaction Tax Rules, 2004. (2) They shall come into force on the 1st day of October, 2004. Definitions. (1) In these rules, unless the context otherwise requires,— (a ) "Act" means the Finance (No. 2) Act, 2004 (23 of 2004); (b ) "authorised bank" means any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934); (c ) "Form" means a Form set out in the Appendix to these rules. (2) Words and expressions used and not defined in these rules but defined in the Act, or the Securities Contracts (Regulation) Act, 1956, or the Income-tax Act, 1961, shall have the meanings respectively assigned to them in those Acts. Value of taxable securities transaction. 3. For the purposes of clause (c) of section 99 of the Act, the value of a taxable securities transaction, being a purchase or sale of an equity share in a company or a unit of an equity oriented fund, entered into in a recognised stock exchange, shall be determined in the following manner, namely :— (a ) where the equity share or unit is purchased or sold by a person on a trading day in the netted settlement mode, — (i) the quantity of shares or units purchased or sold in each trade in that equity sha