Finance Minister P Chidambaram on Wednesday announced Permanent Account Number (PAN) to be made sole identity for participants in the security markets to strengthen capital market.
In a major setback for the investors, Chidambaram proposed raising the rate of DDT from 12.5 per cent to 15 per cent on dividends by companies and bringing Employees' Stock Option Plan (ESOP) under Fringe Benefit Tax regime.
However, Chidambaram also announced proposals like allowing delivery-based short selling by institutional investors and making permanent account number (PAN) as the sole identification number for all participants in securities market.
