(1) The person responsible for transferring securities of any company or any fund listed in a stock exchange shall not transfer the securities unless tax is paid by the transferor in accordance with the following formula before the transfer is effected :-

A = (B-C) x 10%, where,

A = amount of tax payable under this section;

B = transfer value of the securities;

C = acquisition value of the securities.

(2) For the purposes of this section,—

(a) “securities” means the securities of a company or fund held by a sponsor shareholder, director shareholder or placement shareholder of that company or fund;

(b) “transfer” means all kind of transfers other than a gift between mother-father and children and between husband-wife;

(c) “transfer value” means—

(i) the closing price of the securities on the day of consent or approval accorded by the Bangladesh Securities and Exchange Commission or Stock Exchange; or

(ii) where the securities are not traded on the day of consent accorded by the Bangladesh Securities and Exchange Commission or Stock Exchange, the closing price of the securities on the day when such securities were last traded. ]