Finance minister Yashwant Sinha is likely to grant a one-time capital gains tax exemption to the broker-members of all recognised exchanges and give the bourses an exit route in their transition to demutualision. He had given such an exemption to Bombay Stock Exchange earlier this fiscal.
The exit route for regional exchanges which want to shut shop could be allowed to dispose the assets without attracting capital gains tax under Section 54 E of the Income-Tax Act. The window could be open for a limited time period, finance ministry officials said. The exchange would, however, be required to pay a corporate tax of 35 per cent on the funds realised from sale of assets.
The demutualisation guidelines along with the strengthening of the Sebi Act would be part of the finance minister
