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Section 8B of the Indian Stamp Act, 1899 (inserted by the Finance Act, 2005, w.e.f. 13 May 2005) exempts from stamp duty:
A{'text': 'A scheme for corporatisation or demutualisation, or both, of a recognised stock exchange, and instruments transferring property, business, assets etc. for or in connection with the corporatisation or demutualisation, approved by SEBI under Section 4B of the SCRA 1956', 'label': 'A'}
B{'text': 'Every scheme of merger or amalgamation of any company under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India regardless of any other consideration', 'label': 'B'}
C{'text': 'Every scheme of compromise or arrangement of any company under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India regardless of any other consideration', 'label': 'C'}
D{'text': 'Every scheme of winding up of any company under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India regardless of any other consideration of any kind', 'label': 'D'}
Answer & Solution
Correct answer: A. {'text': 'A scheme for corporatisation or demutualisation, or both, of a recognised stock exchange, and instruments transferring property, business, assets etc. for or in connection with the corporatisation or demutualisation, approved by SEBI under Section 4B of the SCRA 1956', 'label': 'A'}
1. Section 8B of the Act, as inserted by the Finance Act, 2005 (w.e.f. 13.5.2005), exempts from stamp duty:
(a) **a scheme for corporatisation or demutualisation, or both, of a recognised stock exchange**; and
(b) **instruments transferring property, business, assets, etc. for or in connection with the corporatisation or demutualisation**, approved by SEBI under sub-section (2) of Section 4B of the Securities Contracts (Regulation) Act, 1956.
2. The exemption was a one-time facilitative measure for the demutualisation of stock exchanges (e.g. BSE) in India.
3. Other corporate schemes are NOT covered by Section 8B.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._
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