AHMEDABAD, Jan 25: The Federation of Indian Stock Exchanges (FISE) at its 11th meeting here on Saturday demanded replacement of proportionate allotment system, in vogue now, by granting weightage to small applicants as was the practice earlier.The apex body of SEs welcomed several recommendations of the Chandratra Committee on delisting of shares, but felt that the mandatory listing on regional stock exchanges should continue in generating greater awareness of the company in the region it is located.
Members of the FISE, expressing their deep concern over the lacklustre conditions in the primary market, unanimously came out at the end of day-long delibersations with several suggestions for revival of the market and bring back the ordinary investors.
For the benefit of subscribers of new issues, FISE suggested that Income Tax exemption should be granted up to Rs 50,000 (on the lines of erstwhile Section 80CC of the IT Act, 1961). Similarly, capital gain realised through any source, if invested in
shares, should be exempted from Capital Gain Tax.
It also suggested that 10 per cent tax on distributable profits should be done away with. The meeting was chaired by P C Shrimal, president of Hyderabad Stock Exchange.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
