Mumbai: Stock Market traders will boycott trading on exchanges to protest the proposal to impose the 0.15 per cent turnover tax on securities transaction.

"We have decided to stay away from the trading to protest against the proposal to impose turnover tax," Association of Stock Market Traders spokesperson Sudhir Dhege said in Mumbai tonight (July 12, 2004).

The imposition of tax would deter the market investments and sap the liquidity from the market, he said.

The jobbers, traders and arbitrators work on a very thin margins and if the Government imposes tax on securities purchase transaction, it would practically leave them nothing for them, market sources said.