Corporate Updates 16 April 2014

Stamp Duty (Proposed): 

The finance ministry has proposed uniform stamp duty rates on transactions of securities across states. For this, it has prepared a draft Bill to amend the Indian Stamp Act, 1989. In the draft, the ministry has suggested a stamp duty rate of 0.0001 per cent of the value of transaction on the sale of currency derivatives through off- market transactions. The draft provides for payment of the duty by the seller of the security through a new system, where exchanges will collect the duty and pass it on to state governments, thereby reducing their administrative costs. Currently, state government machinery collects the duty and not exchanges. In some states, the buyer pays the duty, while in some others the seller.


It has observed by SEBI that the companies listed in Annexure ‘A’ have established connectivity with both the depositories viz NSDL and CDSL. The stock exchanges may consider as Companies are eligible for shifting from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement subject to the conditions that at least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement and there are no other grounds/reasons for continuation of the trading in TFTS. To view & download, Please Click Here.

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