Amendment of section 97.
180. In section 97 of the 2004 Act, with effect from the 1st day of June, 2015,--
(i) after clause (5A), the following clause shall be inserted, namely:- ‘(5AA) “initial offer” shall have the meaning assigned to it in,--
(i) clause (q) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), in case of a business trust being a real estate investment trust;
(ii) clause (v) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), in case of a business trust being an infrastructure investment trust;’;
(ii) in clause (13), after sub-clause (aa), the following sub-clause shall be inserted, namely:--
“(ab) sale of unlisted units of a business trust by any holder of such units which were acquired in consideration of a transfer referred to in clause (xvii) of section 47 of the Income-tax Act, 1961 (43 of 1961) under an offer for sale to the public included in an initial offer and where such units are subsequently listed on a recognised stock exchange; or”.
Notes on Clauses:
Clause 180 of the Bill seeks to insert a new clause (5AA) in section 97 of the 2004 Act. It is also proposed to provide that taxable securities transaction shall also include sale of unlisted units of a business trust by any holder of such units which were acquired in consideration of a transfer referred to in clause (xvii) of section 47 of the Income-tax Act, 1961 under an offer for sale to the public included in an initial offer and where such units are subsequently listed on a recognised stock exchange.
