Clarifications from Ministry of Finance

Aug 23, 1999

Circulars

SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

SMDRP/Policy/Cir-29/99
August 23, 1999

Shir P. V. Maiyya
Managing Director
Central Depository Services (I) Ltd
P. J. Towers, 28^th Floor,
Dalal Street,
Mumbai – 400 023

Shri C. B. Bhave
Managing Director
National Securities Depository Ltd
Trade World, 4^th Floor,
Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel,
Mumbai – 400 013

Dear Sir,

The following clarification has been received by the Ministry of Finance.

Inter-depository trasfer of shares do not attract stamp duty. Inter-depository transfer of securities also do not require compliance with the formalities prescribed under section 108 of the Companies Act 1956.

You are advised to inform all companies whose shares have been admitted for dematerialisation and their registrars and share transfer agents accordingly for full compliance with the above.

Yours faithfully,

P. K. KURIACHEN
DIVISION CHIEF
SECONDARY MARKET, DEPOSITORY,
RESEARCH & PUBLICATIONS DEPARTMENT