| The weighted average price will be arrived at in the following manner"�the quantity of securities purchase or sold in each trade executed by a person will be multiplied by the price at which it is executed to determine the trade value of each trade. |
| The aggregate trade value of all such trades in the equity share or unit by the person on that day shall be arrived at by totalling the trade values. |
| This aggregate trade value will be divided by the total quantity of the securities traded by the person on that day to determine the volume weighted average price of that security for that person for that day. |
| Sebi, has clarified that "the determination of the value of the taxable securities transaction under this clause in a case where the equity share or unit is purchased or sold through a member of the stock exchange, shall be made with reference to the trades executed in the equity share or unit under a particular client code through that member." |
| This is for normal transactions under the rolling settlement mode. For trade to trade transactions the value of the taxable securities transaction shall be the price at which the equity share or unit is purchased or sold. |
| For securities purchased in the auction settlement mode, the value of the taxable securities transaction shall be the volume weighted average price of the security, carried out in the auction session. And where the security is sold in the auction settlement mode, the value of the taxable securities transaction shall be the price at which the equity share or unit is sold. |
| According to the draft rules - which will take effect once the ministry of finance notifies it - the persons responsible for collection and payment of securities transaction tax in the case of a mutual fund, would be the trustee or any other person who is managing the affairs of the mutual fund and authorised by the trustees. In case of the brokers it is the stock exchanges. |
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