The document defines business and speculation business. Business is broadly defined as any trade, commerce, manufacture, profession, vocation or adventure that is in the nature of trade, commerce, manufacture, profession or vocation, but excludes employment. Speculation business specifically refers to any business where contracts for purchasing and selling commodities like stocks and shares are settled without actual delivery or transfer of the commodity, except for specific cases like hedging by manufacturers, dealers, or members of a stock exchange acting in the ordinary course of their business.

1. Business
Definition

2.  “business”
 includes
 any trade,
 commerce,
 manufacture,
 profession,
 vocation or

3.  adventure or concern in the nature of
 trade,
 commerce,
 manufacture,
 profession or
 vocation,
 but does not include employment;

4. Quiz
 What do you understand by “Speculation Business”
?
 Please see Q4 (b) March 2007

5.  “speculation business”
 means
 any business
 in which a contract
 for the purchase
 and sale
 of any commodity
 (including

6.  [stocks] and
 shares)
 is periodically or
 ultimately settled
 otherwise than by the
 actual delivery
 or transfer
 of the commodity,

7.  but does not include
 a business in which

8.  (a)
 a contract
 in respect of
 raw materials or
 merchandise is
 entered into by
 a person
 in the course of
 a manufacturing or

9.  mercantile business
 to guard against loss
 through future price fluctuations
 for the purpose of
 fulfilling the person’s
 Other contracts
 for the actual delivery
 of the goods
 to be manufactured or
 merchandise to be sold;

10.  (b)
 a contract
 in respect of
 stocks and shares
 is entered into by a
 dealer or
 investor
 therein to guard against loss in
 the person’s
 holding of stocks and shares
 through price fluctuations; or

11.  (c)
 a contract
 is entered
 into by a member of
 a forward market or
 stock exchange
 in the course of
 any transaction
 in the nature of jobbing
 [arbitrage]
 to guard against any loss which may

12.  arise
 in the ordinary course
 of the person’s business
 as such member.

13. Question
 Please answer Q4 (a) (iii) March 2008