Investors are no longer required to pay stamp duty relating to agreements on demat account under the new guidelines introduced by market requlator Sebi, a move that will help save costs during registration with the securities market.
The market regulator had recently replaced the agreements which are entered between a depository participant and demat account holder with a simpler and a common document titled 'Rights and Obligations'.
The new document (agreement) which would be signed between a depository participant and demat account holder will not attract any stamp duty, as per a statement issued by the Central Depository Services (India) Ltd (CDSL).
The move will benefit new demat holders who would not be required to pay stamp duty of Rs 100 as charged earlier, CDSL added.
As per the new Sebi guidelines issued on December 4, the depository participant is required to provide a copy of the new document to demat account holder and take an acknowledgement of the same, among others.
The new document would be mandatory and binding on all the existing and new clients and depository participants, the regulator had said.