The Finance Act, 2019 enumerates certain amendments to the Indian Stamp Act, 1899 to overhaul the structure of levy and collection of stamp duty on securities issued and/or transferred in the country. The said amendments are effective form 01st day of April, 2020. The key reform includes:
Simplified stamp duty collection on issue and transfer of securities through one agency, viz., through stock exchanges or its clearing corporations or depositories.
Distribution of such stamp duty appropriately with respective State Governments based on state of domicile of the buyer.
Levy of stamp duty on transfer of securities in dematerialised form, which was earlier exempt.
Wider definition of the term ‘Securities’, ‘Instrument’ and ‘Debenture and ‘Market Value’