(1) Notwithstanding anything contained in this Act,
(a) when the sale of any securities, whether delivery based or otherwise, is made through a stock exchange, the stamp duty on each such sale in the clearance list shall be collected on behalf of the Government of Union territory of Jammu and Kashmir by the stock exchange or a clearing corporation authorised by it, from its buyer on the market value of such securities at the time of settlement of transaction in securities of such buyer, in such manner as the Central Government may, by rules, provide ;
(b) when any transfer of securities for a consideration, whether delivery based or otherwise, is made by a depository otherwise than on the basis of any transaction referred to in clause (a), the stamp-duty on such transfer shall be collected on behalf of the Government of Union territory of Jammu and Kashmir by the depository from the transferor of such securities on the consideration amount specified therein, in such manner as the Central Government may, by rules provide ; and
(c) when pursuant to issue of securities, any creation or change in the records of a depository is made, the stamp-duty on the allotment list shall be collected on behalf of the Government of Union territory of Jammu and Kashmir by the depository from the issuer of securities on the total market value of the securities as contained in such list, in such manner as the Central Government may, by rules, provide.
(2) Notwithstanding anything contained in this Act, the instruments referred to in sub-section (1) shall be chargeable with duty as provided therein at the rate specified in Schedule 1 and such instrument need not be stamped : Provided that no duty shall be chargeable in respect of the instrument of transaction in stock exchanges and depositories established in any International Financial Services Centre set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005).
(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by the Government of Union territory of Jammu and Kashmir on any note or memorandum or any other document, electronic or otherwise, associated with the transaction mentioned in sub-section (1).
(4) The stock exchange or a clearing corporation authorised by it or the depository, as the case may be, shall within the three weeks of the end of each month and in accordance with the rules made in this behalf by the Central Government, in consultation with the Government of Union territory of Jammu and Kashmir, transfer the stamp duty collected under this section to the Government of Union territory of Jammu and Kashmir where the residence of the buyer is located and in case the buyer is located outside India, to the Government of Union territory of Jammu and Kashmir having the registered office of the trading member or broker of such buyer and in case where there is no such trading member of the buyer, to the Government of Union territory of Jammu and Kashmir having the registered office of the participant :
Provided that before such transfer, the stock exchange or the clearing corporation authorised by it or the depository shall be entitled to deduct such percentage of stamp-duty towards facilitation charges as may be specified in such rules.
Explanation. The term participant shall have the same meaning as assigned to it in clause (g) of section 2 of the Depositories Act, 1996 (22 of 1996).
(5) Every stock exchange of the clearing corporation authorised by it and depository shall submit to the Government details of the transactions referred to in sub-section (1) in such manner as the Central Government may, by rules, provide.