Stock brokers remained optimistic on rationalisation of stamp duty charges on transactions by West Bengal after the state government assured to look into the issue.
"We are hopeful as the state has assured to do something about it. Stamp duty is abnormally high here compared to other states and that was resulting into shifting of registered offices of brokers from West Bengal," ANMI President S K Rustagi said here today on sidelines a CII organised conclave.
He said Bengal charges Rs 1,000 on every Rs 1 crore in transactions as stamp duty, which is five times paid in states like Maharashtra and Gujarat.
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"Out of the 1,142 active stock brokers in the country, only 160 has registered offices located in West Bengal. Stamp duty has to be paid to the state where the registered office is located," Rustagi said.
Speaking about the problems faced by the community, he said, our industry is over-regulated and that has bearing on the capital market growth.
A study done internally by Association of National Exchanges Members of India (ANMI) finds the compliance cost and transaction costs are eating away margins of the brokers.
Exchange transaction cost, service tax on brokerage, Sebi transaction fees and Security Transaction Tax are levied on transaction.
