Section 12 - Amendment of section 2 - Finance Act, 2019

Amendment of section 2 12. In section 2 of the Indain Stamp Act, 1899 (2 of 1899) (hereafter in this Part referred to as the principal Act),- (a) for clause (1), the following clauses shall be substituted, namely:- '(1) allotment list means a list containing details of allotment of the securities intimated by the issuer to the depository under sub-section (2) of section 8 of the Depositories, Act, 1996 (22 of 1996); (1A) banker includes a bank and any person acting as a banker;'; (b) in clause (5), the following long line shall be added at the end, namely:- but does not include a debenture; ; (c) after clause (7), the following clauses shall be inserted, namely:- '(7A) clearance list means a list of transactions of sale and purchase relating to contracts traded on the stock exchanges submitted to a clearing corporation in accordance with the law for the time being in force in this behalf; (7B) clearing corporation means an entity established to undertake the activity of clearing and settlement of transactions in securities or other instruments and includes a clearing house of a recognised stock exchange;'; (d) after clause (10), the following clauses shall be inserted, namely:- '(10A) debenture includes- (i) debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not; (ii) bonds in the nature of debenture issued by any incorporated company or body corporate; (iii) certificate of deposit, commercial usance bill, commercial paper and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time; (iv) securitised debt instruments; and (v) any other debt instuments specified by the Securities and Exchange Board of India from time to time; (10B) depository includes- (a) a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); and (b) any other entity declared by the Central Government, by notification in the Official Gazette, to be a depository for the purposes of this Act;'; (e) in clause (12), the words and figures and includes attribution of electronic record within the meaning of section 11 of the Information Technology Act, 2000 (21 of 2000) shall be inserted at the end. (f) for clause (14), the following clause shall be substituted, namely:- '(14) instrument includes- (a) every document, by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded; (b) a document, electronic or otherwise, created for a transaction in a stock exchange or depository by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded; and (c) any other document mentioned in Schedule I, but does not include such instruments as may be specified by the Government, by notification in the Official Gazette;'; (g) after clause (15), the following clause shall be inserted, namely:- '(15A) issuer means any person making an issue of securities;'; (h) for clause (16A), the following clauses shall be substituted, namely:- '(16A) marketable security means a security capable of being traded in any stock exchange in India; (16B) market value , in relation to an instrument through which- (a) any security is traded in a stock exchange, means the price at which it is so traded; (b) any security which is transferred through a depository but not traded in the stock exchange, means the price or the consideration mentioned in such instrument; (c) any security is dealt otherwise than in the stock exchange or depository, means the price or consideration mentioned in such instrument;'; (i) after clause (23), the following clause shall be inserted, namely:- '(23A) securities includes- (i) securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (ii) a derivative as defined in clause (a) of section 45U of the Reserve Bank of India Act, 1934 (2 of 1934); (iii) a certificate of deposit, commercial usance bill, commercial paper, repo on corporate bonds and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time; and (iv) any other instrument declared by the Central Government, by notification in the Official Gazette, to be securities for the purposes of this Act;'; (j) after clause (26), the following clause shall be inserted, namely:- '(27) stock exchange includes- (i) a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); and (ii) such other platform for trading or reporting a deal in securities, as may be specified by the Central Government, by notification in the Official Gazette, for the purposes of this Act.'.