The Indian Stamp (Collection of Stamp Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019

Dec 12, 2019 | by Avantis RegTech Legal Research Team


The Ministry of Finance on December 10, 2019, notifies the Indian Stamp (Collection of Stamp Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019 to regulate the liability of instruments of transaction in stock exchanges and depositories to duty. The stamp-duty in respect of sale of any securities made through the stock exchange including sale in respect of any listed units of any registered pooled arrangements or scheme, or tripartite repo, shall be collected on the settlement day by a stock exchange or clearing corporation authorised by it, at the rates specified in the Indian Stamp Act from the concerned persons.

The nature of a particular transfer of securities is to be treated as on delivery basis or on non-delivery basis and shall be determined by the clearing corporation at the time of settlement, as per established principles governing delivery. The stamp-duty shall be collected from transferor before execution of all off-market transfers involving transfer of securities in the depository system including over the counter trades occurring in dematerialised or electronic form, whereas from the issuers before executing any transaction in the depository system.

These Rules shall come into force on January 09, 2020.

[Notification No. G.S.R. 901(E)]


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