Sections 73A and 73B 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.
Sections 73A and 73B were added to the Act to support Part AA of Chapter II, the part on stamp duty on transactions in securities through stock exchanges and depositories (sections 9A and 9B). Section 73A lets the Central Government make rules for that Part, and section 73B lets it issue directions and authorise the Securities and Exchange Board of India or the Reserve Bank of India to issue instructions, circulars or guidelines. The rules and instructions themselves are not in the text consulted.
Section 73A(1) lets the Central Government, by notification in the Official Gazette, make rules for carrying out Part AA of Chapter II. Section 73A(2) lists matters the rules may cover, such as how stamp duty is collected on behalf of the State Government and transferred to it. Section 73B lets the Central Government issue directions, and authorise SEBI or the RBI in writing to issue instructions, circulars or guidelines for Part AA and the rules. No rule, direction, circular or guideline is printed in the copy consulted, so none is described here.
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, and the central rules concern only the collection arrangements in Part AA; this article explains the central Act only.
Why these two sections exist
Part AA of Chapter II (sections 9A and 9B) deals with stamp duty on the sale, transfer and issue of securities. Section 9A makes the stock exchange, the clearing corporation and the depository collect the duty on behalf of the State Government in specified cases. Our article on section 9A and the sale, transfer and issue of securities through stock exchange and depository explains that Part, and our article on section 9B covers securities outside the exchanges. The two sections discussed here are the machinery that allows the details to be worked out centrally.
The footnotes in the copy consulted show that section 73A was inserted by Act 7 of 2019, s. 19, with effect from 1-7-2020 (with a note that it was earlier notified with effect from 9-1-2020 followed by 1-4-2020), and that section 73B was inserted by Act 12 of 2020, s. 144, with effect from 1-4-2020. A business dealing in securities who wants this explained against a live transaction can use our share transfer service.
Section 73A(1): the general rule-making power
"The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of Part AA of Chapter II."
Four points:
- The power belongs to the Central Government, whereas the general rule-making power in section 75 belongs to the State Government (see our article on sections 75 and 76).
- The rules are made "by notification in the Official Gazette".
- The purpose is limited to Part AA of Chapter II, that is, sections 9A and 9B.
- Section 76(2A) separately requires that every rule made by the Central Government under the Act be laid before each House of Parliament for a total period of thirty days.
Section 73A(2): the matters the rules may cover
"Without prejudice to the generality of the provisions of sub-section (1)", the rules may be made for the following matters. The list is printed in five clauses.
| Clause | Matter | The section it ties to |
|---|---|---|
| (a) | The manner of collection of stamp-duty on behalf of the State Government by the stock exchange or the clearing corporation authorised by it, from its buyer | Section 9A(1)(a) |
| (b) | The manner of collection of stamp-duty on behalf of the State Government by the depository from the transferor | Section 9A(1)(b) |
| (c) | The manner of collection of stamp-duty on behalf of the State Government by the depository from the issuer | Section 9A(1)(c) |
| (d) | The manner of transfer of stamp-duty to the State Government | Section 9A(4) |
| (e) | Any other matter which has to be, or may be, provided by rules | Part AA generally |
The phrase "without prejudice to the generality" means that the list does not cut down the general power in sub-section (1). Clauses (a) to (d) concern the way duty is collected and passed on, not the rate. The rates are those of the Schedule, which the central Act prints for the securities in Articles 27 and 56A; see our article on those Articles for the percentages as printed.
What the central text does not contain. The copy consulted has no rules made under section 73A. It does not set out the manner of collection, the form of any return, or any percentage of facilitation charges under section 9A(4). We therefore describe none of it. Where the Act says the matter is to be provided "by rules", the rule is not in the text consulted and we stop there.
Section 73B: directions and authorisation
Section 73B is headed "Power to issue directions and to authorise certain authorities to issue instructions, etc." It lets the Central Government do two things.
(a) Issue directions "relating to such matters and subject to such conditions, as it deems necessary".
(b) Authorise, in writing, the Securities and Exchange Board of India (established under section 3 of the Securities and Exchange Board of India Act, 1992, Act 15 of 1992) or the Reserve Bank of India (constituted under section 3 of the Reserve Bank of India Act, 1934, Act 2 of 1934) to issue instructions, circulars or guidelines.
All of this is "for carrying out the provisions of Part AA of Chapter II and the rules made there under". Two things follow from the words. First, the authorisation under clause (b) has to be in writing, so a circular from SEBI or the RBI under this section depends on a written authority from the Central Government. Secondly, the purpose is again confined to Part AA and the rules under section 73A.
The copy consulted does not print any direction under clause (a), any written authority under clause (b), or any instruction, circular or guideline. A reader who needs one must find it in the official sources, and this article names none.
How to read the two sections together
Section 73A is about rules, which are notified in the Gazette and laid before Parliament. Section 73B is about directions and instructions, which are not described as rules and for which the section does not mention laying before Parliament. The section does not say how the two interact if they conflict. We state only what the text prints.
An example with invented names
Kalyan Securities is a stock broker whose client, Mr. Rao, buys shares through a stock exchange. Section 9A(1)(a) provides for the stamp duty to be collected from the buyer by the stock exchange or the clearing corporation authorised by it. How that collection is made is a matter section 73A(2)(a) allows the rules to cover. The reader who wants to know the precise manner has to go to the rules. They are not in the text consulted, so this article cannot say what they require.
Later, the stock exchange passes the duty to the State. Section 73A(2)(d) allows the rules to cover the manner of transfer to the State Government under section 9A(4). Our article on sections 9A and 62A explains the remittance provision itself.
What the text does not say
- It does not print the rules under section 73A.
- It does not print any direction under section 73B(a).
- It does not print any authorisation to SEBI or the RBI, or any circular or guideline.
- It does not say what is to happen where an instruction conflicts with a rule.
Need help with securities and share transfer documents?
If your company issues securities or transfers shares and you want to understand which stamp provisions apply to a particular step, our team can walk through the transaction under our share transfer service. We read the documents and tell you where the central Act, the Schedule and the State's own law come in.
Key takeaways
- Section 73A(1) gives the Central Government a rule-making power, by notification in the Official Gazette, for Part AA of Chapter II.
- Section 73A(2) lists matters such as the manner of collection by the exchange, clearing corporation or depository and the manner of transfer to the State Government.
- Section 73B lets the Central Government issue directions and authorise SEBI or the RBI in writing to issue instructions, circulars or guidelines for Part AA.
- No rule, direction, circular or guideline is in the text consulted.
- Rates for securities are in the Schedule (Articles 27 and 56A), not in these sections.
Read next
- Section 9A: stamp duty on sale, transfer and issue of securities through stock exchange and depository
- Section 9B: stamp duty on issue and off-market transfer of securities
- Sections 75 and 76: power to make rules and their publication
- Articles 27 and 56A: debenture and shares, derivatives and other securities
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.