Section 43(5) - Meaning of term "Speculative Transaction"

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..... shares is periodically or ultimately settled otherwise than by actual delivery or transfer of the commodity or scrip except the following: contract for raw materials in the course of manufacture to guard against loss through future price fluctuations contract for stocks and shares entered by a dealer to guard for loss of holdings through future price fluctuations contract entered by member of forw .....

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..... k broker or sub-broker or intermediary to its client the contract note indicates the unique client identity number the contract note indicates the PAN. An eligible transaction carried out in respect of trading in derivatives in commodities in a recognised association shall not be deemed to be a speculative transaction provided commodities transaction tax is chargeable to such transaction. Exceptio .....

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..... es. Therefore, forward contract in agricultural commodities will be regarded as speculation transaction. Forward contract on commodities other than agricultural commodities will not be regarded as speculative transaction. Forward contract on agricultural commodities will be treated as speculative transactions. Trading in agricultural commodity derivatives - Provided further that in respect of trad .....

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