Budget proposes Radical Overhaul of Rates (and Payment Mechanism) of Stamp Duty on Issuance and Transfer of 'Securities' in India
- This would restrict the forum shopping of jurisdictions with favourable stamp duties
- Therefore, no separate stamp duty payable on: (a) security subscription / purchase agreements, (b) security certificates, and / or (c) allotment letters.
- This would greatly reduce costs associated with transactions (especially in high stamp duty states, such as Maharashtra) and ease the execution of documents.
Instrument |
Stamp Duty Payable |
Issuance of debentures (irrespective of whether marketable or not) |
0.005% |
Transfer of debentures (irrespective of whether marketable or not) |
0.0001% |
Issuance of securities (other than debentures) |
0.005% |
Transfer of security (delivery basis) |
0.015% |
Transfer of security (non-delivery basis) |
0.003% |
Equity and commodity futures |
0.002% |
Equity and commodity options |
0.003% |
Currency and interest rate derivatives |
0.0001% |
Other derivatives |
0.002% |
Government securities |
0% |
Repo on corporate bonds |
0.00001% |
- Aakash Choubey (Partner), Deepak Jodhani (Partner) and Kapish Mandhyan (Senior Associate),
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