Rajiv Memani, CEO and country managing partner, Ernst & Young: The transaction tax and short-term tax would have significant impact on the tax liability of assesses, particularly foreign institutional investors, who typically hold stock for shorter periods when compared with retail investors.

The Budget fineprint throws up some other interesting issues as well, like where the shares are sold in pursuance of a public offer under the takeover code, the exemption or lower rate of tax will not be available because the transaction would not be entered into on a recognised bourse.

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