Abolishes Stamp Duty on Demat Deals
The Securities Exchange Board of India (Sebi), has introduced a measure to streamline investments in equities under which investors will no longer have to pay stamp duty for agreements on dematerialised (demat) accounts.
This is also expected to cut costs, apart from making registration of securities easier.
“This is an important step towards making entry into the capital markets more inexpensive and client friendly,” said Jayant Manglik, president of retail distribution, Religare Securities Ltd.
Sebi recently had replaced the agreements between a depository participant and demat account holder with a simpler and a common document titled ‘Rights and Obligations’. The new document (agreement), which would be signed by a depository participant and demat account holder, will not need any stamp duty, said a statement issued by the Central Depository Services (India) Ltd.
This would help new demat account holders who would not be required to pay a mandatory stamp duty of ` 100 as charged earlier, CDSL said.
Hindustan Times, New Delhi, 07-12-2013