The revised Finance Act has also legalised administrative doctrine regarding categories of portfolio securities which could benefit from the long term capital gain regime. In the future, two types of securities will fall within the scope of the regime: first, securities falling within this category from an accounting point of view and recorded as such, and secondly, securities considered for tax purposes as equity shares, i.e. securities arising from a takeover bid or public exchange offer as well as securities permitting the application of the regime for parent companies. For the two latter categories, the application of the long term capital gain regime is subject to their being recorded as equity shares, or in a specially created sub-account. In this regard, the revised Finance Act specifies that the realization of capital gain recorded on transfers of securities includes henceforth any operations affecting securities recorded in the special "securities subject to the long term capital gain regime" sub-accounts.
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