Chapter II AMENDMENT IN THE RAJASTHAN STAMP ACT, 1998

In section 2 of the Rajasthan Stamp Act, 1998 (Act No. 14 of 1999), hereinafter in this Chapter referred to as the principal Act,-

1. (i) for the existing clause (xix), the following shall be substituted, namely:- "(xix) "instrument" includes-

1. (a) every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished, or recorded; and
2. (b) any other document mentioned in the Schedule; Explanation.- The term "document" also includes any electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (Central Act No. 21 of 2000).";
   • (ii) for the existing clause (xxxiii-a), the following shall be substituted, namely:- "(xxxiii-a) "securities" includes-
3. (a) securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (Central Act No. 42 of 1956);
4. (b) a "derivative" as defined in clause (a) of section 45U of the Reserve Bank of India Act, 1934 (Central Act No. 2 of 1934);
5. (c) a certificate of deposit, commercial usance bill, commercial paper, repo on corporate bonds and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time; and
6. (d) any other instrument declared by the Central Government, by notification in the Official Gazette, to be securities for the purposes of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899);"; and
   • (iii) for the existing clause (xxxvii), the following shall be substituted, namely:- "(xxxvii) "stock exchange" includes-
7. (a) a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (Central Act No. 42 of 1956); and
8. (b) such other platform for trading or reporting a deal in securities, as may be specified by the Central Government, by notification in the Official Gazette, for the purposes of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899).".

In section 5 of the principal Act, after the existing sub-section (2), the following new sub-section shall be added, namely:- "(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or transfer of securities, the instrument on which stamp duty is chargeable under section 9A of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899) shall be the principal instrument for the purpose of this section and no stamp duty shall be charged on any other instruments relating to any such transaction.".

In sub-section (2) of section 9 of the principal Act, after the existing expression "other marketable securities" and before the existing punctuation mark ".", appearing at the end, the expression "or of such other instruments as may be specified by the State Government by notification in the Official Gazette" shall be inserted.

In sub-section (1) of section 18 of the principal Act, for the existing punctuation mark ".", appearing at the end, the punctuation mark ":" shall be substituted and after sub-section (1), so amended, the following proviso shall be added, namely:- "Provided that every instrument executed out of the State relating to any property situate in the State shall be produced within three months from the date of its execution before the Collector within whose jurisdiction property is situate."

For the existing section 23 of the principal Act, the following shall be substituted, namely:- "23. 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 the market value of such stock or security: Provided that the market value for calculating the stamp duty shall be, in the case of-

1. (a) options in any securities, the premium paid by the buyer;
2. (b) repo on corporate bonds, interest paid by the borrower; and
3. (c) swap, only the first leg of the cash flow."

In clause (d) of section 32 of the principal Act, for the existing expression "exchange", the expression "exchange including swap" shall be substituted.

In sub-section (3) of section 36 of the principal Act, for the existing second proviso, the following shall be substituted, namely:- "Provided further that nothing in this section shall authorise the Collector to endorse-

1. (a) any instrument executed or first executed in the State and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
2. (b) any instrument executed or first executed out of the State and brought to him after the expiration of three months after it has been first received in the State."

In proviso to section 39 of the principal Act,-

1. (i) for the existing clause (d), the following shall be substituted, namely:- "(d) nothing herein contained shall prevent the admission of any instrument in any court when such instrument has been executed in favour of the Government or where liability to pay stamp duty is on the Government or where it bears the certificate of the Collector as provided by section 36 or any other provision of this Act."; and
2. (ii) the existing clause (g) shall be deleted.

In section 53 of the principal Act, after the existing sub-section (6), the following new sub-section shall be added, namely:- "(7) For the purpose of inquiries under this section, the Collector shall have power to summon and enforce the attendance of witnesses, including the parties to the instrument or any of them, and to compel the production of documents by the same means, and so far as may be in the same manner, as is provided in the case of civil court under the Code of Civil Procedure, 1908 (Central Act No. 5 of 1908)."."

In the Schedule of the principal Act,-

1. (i) the existing Article 5-A and Article 18 shall be deleted;
2. (ii) in Article 26, in the entry of column (1), after the existing expression "Delivery order in respect of goods" and before the existing expression ", that is to say", the expression "(excluding delivery order in respect of settlement of transactions in securities in stock exchange)" shall be inserted; and
3. (iii) for the existing Article 34, the following shall be substituted, namely:-

"34. Letter of allotment in respect of any loan to be raised by any company or proposed company. Five hundred rupees.

".