What The Term Stamp Duty Calculator Elaborates?
The depositories are responsible for collecting stamp duty from the issuer under clause (c) of sub-section (1) of Section 9A-
When new securities are created or when there are changes in the depository records. This collection must be done before any transactions take place in the depository system.
When securities are issued, the issuer must submit the depository with an allotment list for initial or further issues of securities, private placements, or purchases made after open offers, tender offers, or offers for sale. This list is submitted at the time of securities allotment.
Stamp duty will not be collected by the depository for the generation or destruction of securities due to corporate actions which can be stock splits, stock consolidations, mergers, and acquisitions, or similar actions if there is no change in beneficial ownership. However, if a fresh issue is made to an investor as part of a corporate action, stamp duty will apply.
For transactions resulting from tender offers, open offers, offers for sale, or private placements carried out via a depository, stamp duty will be levied from the offeror on grounds of the market value of the securities being acquired or sold, at the offer price, once the offer is successfully made.
In the case of the acquisition of shares of minority shareholders by majority shareholders under Section 236 of the Companies Act, 2013, facilitated through a corporate action, the depository will collect stamp duty from the issuer instead of the transferor.