Section 21 of The Indian Stamp Act, 1899 View Chapter 2

Stock and marketable securities how to be valued.

   Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on 1 [the market value of such stock or security.]

   2 [Provided that the market value for calculating the stamp-duty shall be, in the case of—

       (i)  options in any securities, the premium paid by the buyer;

       (ii)  repo on corporate bonds, interest paid by the borrower; and

       (iii)  swap, only the first leg of the cash flow.]

1Subs. by Act 7 of 2019, s. 16, for “the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.” (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

2Ins. by s. 16, ibid. (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]