- Stamping of shares is the legal demand by the numerous laws. In every transaction such as buying, selling, transferring of shares need to be stamped. The Indian Government introduced e-stamping to make the stamping easy and simplified way to pay stamp duty, especially, if you are comfortable using online payment services. In fact, in certain states, such as Delhi, all stamp duty needs to be paid through e-stamping.
- The central government has appointed the Stock Holding Corporation of India Limited (SHCIL) as the Central Record Keeping Agency (CRA) for all e-stamps used in the country.
- Currently, SHCIL is responsible for everything-from user registration to administration, all e-stamping applications and maintenance of records. SHCIL has also designated authorised collection centres, or ACCs-scheduled banks-that will issue certificates to users.
Procedure of E- stamping
- First, you will have to go to the SHCIL website, www.shcilestamp.com, and check if your state government allows e-stamping. The site also has information on which transactions require stamping and addresses of collection centres.
- If the option is available in your state, you will have to fill an application form at an ACC. The application form should have details of the parties involved and the transaction for which it is to be used.
- This form is to be submitted along with payment for the stamp certificate. You can pay in currency or use a cheque or demand draft if it is done at the ACC. Online payment can be made using debit cards, credit cards, pay orders, RTGS, NEFT or through an account-to-account transfer.
Public Notice Issued by government (NCT of Delhi)
The competent authority in the Government of NCT of Delhi has approved the inclusion of the following articles for payment through e-stamping:
- Article 23- Conveyance (M&A of companies under Amalgamation scheme)
- Article 59- Share Warrants
- Article 59- Transfer (With or Without consideration for Debentures & Company Shares)
- Article 47- Policy of Insurance
- Article 27- Debenture
- Article 13- Bills of Exchange
- Article 15- Bonds
- Article 19- Certificate or other document (Share
Procedure of E-stamping in Delhi
- Specified Banks branches and SHCIL offices are authorised for collection of stamp duty above Rs 500/- Payments can be made through Cash/DD, RTGS, NEFT and Fund Transfer.
- SHCIL offices & counters located at Tis Hazari Court, Delhi High Court, Karkardooma Court, Rohini Court, Saket Court and Patiala Court, stamp duty can be paid for all denominatios through cash (upto Rs 500/-) Cheque/DD, RTGS, NEFT and Fund Transfer.
- SHCIL has appointed over 2200 Authorised Collection Centres (ACCs) across Delhi. From these ACCs e-stamps for all-purposes can be obtained. The Complete list of ACCs is available at www.shcilestamp.com.
Benefits of E- stamping
The benefits of using e-stamps are many. It can be generated within minutes and is tamper-proof and all data is saved by SHCIL. In addition, an e-stamp’s authenticity can be verified online using the enquiry module on the website as each e-stamp generates a unique identification number.
Disadvantage of E-stamping
The major flaw is that if the e-stamp certificate is misplaced, a duplicate copy cannot be issued. Also, if you wish to cancel the request for an e-stamp for a refund, it can be done only at SHCIL offices and not at the ACC that issued the certificate.