Global Trust Bank goes bust

Finance minister P Chidambaram finally relented to market pressure and exempted bonds from the new transaction tax and reduced the levy on day traders and arbitrageurs from 0.15 per cent to 0.10 per cent.

Making the announcement in Parliament on July 21, Chidambaram said the 0.15 per cent fixed transaction tax on all securities has now been replaced by differential rates.

He said those securities, which attract 0.15 per cent transaction tax will continue to be exempt from the Long Term Capital Gains tax and attract 10 per cent Short Term Capital Gains tax.

While retaining 0.15 per cent tax on delivery based transactions, Chidambaram said it would be shared equally by buyers and sellers.
-- The Global Trust Bank Crisis: Complete Coverage

A Global Trust Bank branch in Mumbai. Inset: Ramesh Gelli, former GTB chief.

Photograph: Jewella C Miranda

Also see: Chidambaram, the dream merchant