Articles 27 and 56A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Articles 27 and 56A carry the percentage rates that sections 9A and 9B apply to securities. Article 27 covers debentures (issue, and transfer and re-issue). Article 56A covers securities other than debentures: issue, transfer on a delivery basis, transfer on a non-delivery basis, four classes of derivatives, Government securities and repo on corporate bonds. Both Articles were substituted or inserted by Act 7 of 2019, and the rate for each is a percentage and not a slab.
The central Schedule prints 0.005% for the issue of a debenture and 0.0001% for its transfer and re-issue (Article 27). For other securities it prints 0.005% on issue, 0.015% on a delivery-basis transfer and 0.003% on a non-delivery-basis transfer, with separate percentages for futures, options, currency and interest rate derivatives, other derivatives, Government securities (0%) and repo on corporate bonds (0.00001%). Debentures and transfers of shares are Union instruments under section 9(2)(a): the rate is the one the central Schedule prints, and any reduction or remission under section 9 and later amendments should be checked.
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021). Later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed; debentures and transfers of shares are among the exceptions named in section 9(2)(a), and sections 9A and 9B say that duty on securities is collected or payable at the rate specified in Schedule I. This article explains the central Act only.
How the copy prints Article 56A
The copy prints the nine percentages of Article 56A in a column beside the rows of Articles 55 to 57, out of line with the descriptions, and prints the duties of Article 57 beside the derivatives rows of Article 56A. The percentages are in the right order, and we have rebuilt them in the order of the nine rows. The official text should be checked.
Article 27: debenture
Article 27 is headed "Debenture (see section 9A and 9B)". The footnote shows it as substituted by Act 7 of 2019, s. 21, for Article 27, with effect from 1-7-2020 (earlier notified with effect from 9-1-2020 followed by 1-4-2020).
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it | Exemptions as printed |
|---|---|---|---|
| 27(a) | In case of issue of debenture | 0.005% | See below |
| 27(b) | In case of transfer and re-issue of debenture | 0.0001% | See below |
Explanation. The term "Debenture" includes any interest coupons attached to it, but the amount of such coupons is not to be included in estimating the duty.
Exemption. A debenture issued by an incorporated company or other body corporate in terms of a registered mortgage-deed, duly stamped in respect of the full amount of debentures to be issued under it, whereby the company or body borrowing makes over, in whole or in part, its property to trustees for the benefit of the debenture holders. The proviso: the debentures so issued must be expressed to be issued in terms of the mortgage-deed.
Cross-reference. "See also Bond (No. 15): and sections 8 and 55." Section 8 is the section on securities issued by local authorities, and section 55 deals with renewal of a debenture.
Article 56A: security other than debentures
The Article is headed "Security other than debentures (see sections 9A and 9B)" and was inserted by Act 7 of 2019, s. 21 (with effect from 1-7-2020, earlier notified as above).
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it |
|---|---|---|
| 56A(a) | Issue of security other than debenture | 0.005% |
| 56A(b) | Transfer of security other than debenture on delivery basis | 0.015% |
| 56A(c) | Transfer of security other than debenture on non-delivery basis | 0.003% |
| 56A(d)(i) | Derivatives: futures (equity and commodity) | 0.002% |
| 56A(d)(ii) | Derivatives: options (equity and commodity) | 0.003% |
| 56A(d)(iii) | Derivatives: currency and interest rate derivatives | 0.0001% |
| 56A(d)(iv) | Derivatives: other derivatives | 0.002% |
| 56A(e) | Government securities | 0% |
| 56A(f) | Repo on corporate bonds | 0.00001% |
No exemptions are printed under Article 56A. If your company issues or transfers securities and wants to know which row applies, our allotment of shares (PAS-3) service can help.
How sections 9A and 9B apply these percentages
Section 9A(1) says that when a sale of securities, whether delivery based or otherwise, is made through a stock exchange, the stamp-duty on each sale in the clearance list is collected on behalf of the State Government by the stock exchange or a clearing corporation authorised by it from the buyer, on the market value of the securities at the time of settlement. Where a depository transfers securities for a consideration, the duty is collected from the transferor on the consideration amount. On an issue, a creation or change in the records of a depository, the duty on the allotment list is collected from the issuer on the total market value of the securities in the list. Section 9A(2) says these instruments are chargeable "at the rate specified in Schedule I" and need not be stamped, and its proviso says no such duty is chargeable on instruments of transactions in stock exchanges and depositories in an International Financial Services Centre set up under section 18 of the Special Economic Zones Act, 2005. Section 9B applies Schedule I to issues and to sales, transfers and reissues made otherwise than through a stock exchange or depository, payable by the issuer, or by the seller, transferor or issuer, on the consideration amount specified in the instrument.
For the sections themselves, see our articles on section 9A and section 9B, and for the definitions of securities, debenture, market value and issue (the last with a wording slip: "issue" is defined as "any person making an issue of securities") see our article on the securities definitions in section 2.
The rules under section 73A and the facilitation percentage under section 9A(4) are not in the text consulted, and nothing is said about them here.
Worked examples using the percentages
These examples show only the arithmetic of the percentages as printed.
Issue of debentures. Orion Infra Limited issues debentures with a total market value of Rs. 10,00,000. Article 27(a) prints 0.005%. 0.005% of Rs. 10,00,000 is Rs. 50. Under section 9B(a), where the issue is made otherwise than through a stock exchange or depository, the issuer pays at the place of its registered office on the total market value.
Delivery-basis sale. A buyer purchases shares worth Rs. 1,00,000 on a stock exchange on a delivery basis. Article 56A(b) prints 0.015%. 0.015% of Rs. 1,00,000 is Rs. 15. Under section 9A(1)(a) it is collected from the buyer by the stock exchange or clearing corporation.
Non-delivery. The same value on a non-delivery basis would be at 0.003% under Article 56A(c), which is Rs. 3.
Government securities. Article 56A(e) prints 0%, so the percentage of the market value is nil.
These are the amounts under the central Schedule. Because debentures and transfers of shares are Union instruments, the rate is the central Schedule's, and any reduction or remission under section 9 and later amendments should be checked.
Who bears the stamp expense
Section 29(h) to (l) puts the expense on the buyer for a sale through a stock exchange, the seller for a sale otherwise than through a stock exchange, the transferor for a transfer through a depository or otherwise, and the issuer for an issue, in the absence of agreement to the contrary. Our article on section 29 sets out the list.
Need help with issues and transfers of securities?
If your company is issuing shares or debentures, or recording a transfer, and you want to know which row of Articles 27 and 56A applies, our team can help through our allotment of shares (PAS-3) service. We work from the documents and the section that applies.
Key takeaways
- Article 27 prints 0.005% on the issue of a debenture and 0.0001% on its transfer and re-issue.
- Article 56A prints nine percentages for securities other than debentures, from 0.015% on a delivery-basis transfer to 0% for Government securities and 0.00001% for repo on corporate bonds.
- Sections 9A and 9B apply "the rate specified in Schedule I"; the copy prints the nine percentages out of line and they have been rebuilt in order.
- The rate is the central Schedule's for these Union instruments; check any reduction under section 9.
- The rules under section 73A are not in the text consulted.
Read next
- Section 9A of the Indian Stamp Act, 1899: stamp duty on sale, transfer and issue of securities through stock exchange and depository
- Section 9B of the Indian Stamp Act, 1899: stamp duty on issue and off-market transfer of securities
- Articles 19, 36, 59, 62 and 52 of Schedule I: share certificate, letter of allotment, share warrant, transfer and proxy
- Debentures: types, issue process and compliance
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.