Intraday trading in commodity mkt-speculativeor nonspeculati

CA Abhishek Singh (practice) (2106 Points)

29 July 2014  

My client is doing transaction in commodity market as intra day. contract is settled on daily basis. "

 

trading in derivatives, referred to in Section 2(ac) of the Securities Contracts (Regulation) Act, 1956, carried out on a recognised stock exchange is not deemed to be a speculative transaction. Recognised stock exchanges are NSE, BSE, the MCX Stock Exchange and the United Stock Exchange of India. The transaction will be treated as non-speculative business income "

My question : Is intraday tracsaction in commodity market is trading in derivative and whether it is speculative or nos speculative business ? waiting for the views of the experts.