Stamp duty on compulsory convertible debentures
Sagar K
(Querist) 21 December 2011
This query is : Resolved
Hi,
Can any one please advice on the stamp duty aspect for Issue of Compulsory Convertible Debenture Certificate in the State of Maharashtra and Andra Pradesh. (what stamp duty is applicable on CCD agreement and also on CCD Certificate and under what provision of law)
Thanks in Advance
Sagar R K
Raj Kumar Makkad
(Expert) 21 December 2011
SEBI Guidelines for Disclosure and Investor Protection - Clarification IV, dated 21-9-1992. The relevant portion reads as under:-
"FCDs/PCDs convertible within 18 months are considered quasi-equity and, therefore, they are to be treated on par with equity. Long-term conversion after 18 months amounts to raising deferred equity. The guidelines also provide for promoters, contribution to the equity to the extent of minimum specified percentage by way of participation in FCDs/ PCDs with the same conversion price as applicable to public."
Sagar K
(Querist) 22 December 2011
Dear Mr. Makkad,
Thanks for your reply, could you please also advice if this is the same for a private Company issuing unsecured CCD?
also what would be the amount of stamp duty applicable if the certificate is issued in Maharashtra and under what provision of law?
Thanks in advance
Sagar
