17 December 2009
According to Section 43(5)(d), an eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956, would not be speculative transaction.
And clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 defines derivatives as Derivative includes: - a. a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security; b. a contract which derives its value from the prices, or index of prices, of underlying securities;
17 December 2009
Hence derivatives as defined in Section 43(5)(d) does not include currency derivatives and any income from currency derivatives would be speculative income.
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