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Sagnik (Management Trainee)     20 June 2012

Stamp duty on pledged shaes held in demat

Dear all,

We are entering into a deed of pledge of shares which are held in dematerialised form. Do we have to pay any stamp duty on that deed of pledge ? Indian Stamp Act states that pledge of share held in demat form need not pay Stamp Duty, but we are executing a deed of pledge, hence will that instrument (i.e the deed of pledge) attract stamp duty ?

Regards,

Sagnik Sanyal



Learning

 3 Replies

Gopikrishna Kalyanam (Lawyer)     20 June 2012

Dear Sagnik,

Yes, it will be treated as Agreement or Memorandum of Agreement. Check with your State's Schedule of Stamp Duty.

Best Wishes

Sagnik (Management Trainee)     21 June 2012

Dear Mr. Kalyanam,

Thank you for your answer. You are telling me that the DEED OF PLEDGE shall be treated as Agreement or Memorandum of Agreement & not as pledge when it comes to Stamp Duty on Agreement relating to Deposit of Title-deeds,  Pledge. Am I correct in understanding you sir ?

Regards,

Sagnik Sanyal

Gopikrishna Kalyanam (Lawyer)     21 June 2012

Dear Sagnik,

Yes, in the case of a deed of pledge of marketable security.

Best Wishes

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