Maharashtra coffers fill up on market rally

A buoyant stock market has resulted in a 48 per cent rise in the stamp duty paid to the Maharashtra government. The BSE and the NSE together contributed one-fifth to the growth of Maharashtra stamp duty collection in 2006-07.

Following a bull run, trading volumes of the country's premium stock markets went up by 22 per cent in 2006-07. The state department of registration and stamps' revenue collection grew by 17.65 per cent to Rs 512.92 crore during the financial year 2006-07. Nearly 21.26 per cent (Rs 109.07 crore) of this growth came from the stock exchanges. 

CASHING IN
Year	Stamp Duty Collection (Rs cr)	NSE&BSE  share
2005-06	2,905.16	225.13
2006-07	3,418.08	334.20
FY07 total stamp duty collection grew by 512.92 cr (17.65 %) FY07 stamp duty payment by NSE, BSE grew by 109.07 cr (48%), which is 21 per cent of overall growth collection

The stamp duty paid by the bourses went up by 48 per cent to Rs 334.2 crore during the same period.The duty stood at Rs 225.13 crore in the financial year 2006.

Total turnover of the BSE and the NSE in 2005-06 was Rs 23,52,831.73 crore, which reached Rs 28,86,416.84 crore in 2006-07, up by 22.7 per cent.

Investors pay stamp duty on the value of the transaction to the brokers, which brokers deposit with the stock exchange which passes it on to the state government.

Meanwhile, Increasing volumes have prompted brokerage houses such as India Infoline, India Bulls and Motilal Oswal to to install franking machines in the main offices-branches.