rajesh tatineni (MANAGING DIRECTOR) 03 May 2013

How much stamp paper needed for agreement with a broking fir

hello,

I am running a stock advisory firm, as a part of business we have a adeal with one reputed stock broking firm for research outsourcing for a particular time period. In a couple of days we need to start the services, before that i just want to make an agreement witht them with some important and legal points to avoid misunderstanding and disturbances in the business. So finally my questions are :

1.Is stamp paper is needed for the above said agreemetn ot simply get its printed on their company letter head and get it signed by them?

2. if stamp paer needed how much stamp paer is needed? the value of the contract is 40k per quarter...!!!

3.shall i state the point like automatic renewal of the agreement without getting signed on every quarter at the time of expiry of the deal?

so kindly answer these questions whch hepls me to close the deal smoothly and legally...

thanks in advance.

Regards,

Rajesh Tatineni

Managing Director

BSH advisory

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4 Replies

Rajendra K Goyal (Advocate) 08 May 2013

For the execution of an agreement stamp paper is needed. The Stamp fee differs from State to State. Please get the information from local Lawyer about the Stamp fee leviable in your State. Even the Stamp Vender from whom the stamp paper is to be purchased can also guide in the matter. An Agreement is broadly governed by Contract Act and your terms and conditions should basically fulfil the ingredients and requirements of Contract act.

uttamtibrewal@yahoo.com (Advocate) 25 June 2014

dear Rajesh jee...

500/- Stamp paper is enough for the agreement ..... WIll you get the agreement registered then you need to pay more stamp duty as per the money involved ... you can even go with notarized agreement ....

Its better to use a stamp paper rather then making on plain paper....

yes you can add on a point of automatic renewal ......

for any query or draft you can reply back