25% OFF on all LCI Courses. Offer valid till 5th Oct. Use Code: DUS25
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Can a vrs candidate trade equity through demat account?

(Querist) 16 August 2021 This query is : Resolved 
Please inform me whether a VRS person who takes VRS from PSU, can trade equity through demat account. Give the Indian rules.
P. Venu (Expert) 17 August 2021
What is the context for this query?
D ROY (Querist) 18 August 2021
Is there any restriction, if one person who takes VRS from PSU in 2019, wants to trade share within a year after retirement. Please highlight the restricted points.
Dr J C Vashista (Expert) 19 August 2021
After retirement from service the employee is can opt any profession / business of his / her choice.
Adv K Rajasekharan (Expert) 19 August 2021
No rule disallows any retired person or a person in service trading shares for investment purposes using a Demat account and gain short term or long term capital gains.

Even government encourages the officers in investing in long term mutual funds (ELSS) by allowing tax benefits under 80 C of the income tax act, as well.

For a retired person he is free to engage in even day trading which is treated something equivalent to a business.
T. Kalaiselvan, Advocate (Expert) 04 September 2021
There is no restrictions for the person who had come out of the service by VRS to involve in trading activities including intra day trading
Sudhir Kumar, Advocate (Expert) 22 November 2021
for mpore guidance please post facts of the case.

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Post a Suggestion for LCI Team
Post a Legal Query