Since Uttarakhand state has adopted Indian Stamp Act and as per Indian Stamp act :
Bonds, debentures or other securities issued on loans under Act XI of 1879 - (1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the 3Local Authorities Loan Act, 1879, or of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with duty of 4[one per centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped, and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.
1Substituted for the words “East Punjab” by the Adaptation of Laws Order, 1950. The words “East Punjab” had been substituted for the words “the Punjab” by the India (Adaptation of Existing Indian Laws) Order, 1947.
2Sub-sections (1), (2) and (3) repealed by Act 11 of 1963, section 92 (w.e.f. 1st August, 1963).
3See now Act 9 of 1914. Unrepealed Central Acts; Volume VI.
4Substituted for the words “eight annas per centum” by the Indian Stamp (Amendment) Act, 1910 (6 of 1910), section 2.
So accordingly the stamp duty payable will be 8 anna per 100. i could not derive exact meaning of this phrase.
A private company is prohibited from inviting public to subscribe to its shares or debentures. However, nothing prohibits the company from issuing debentures on private placement basis, if the Articles of the company empowers the Board to borrow by issuing debentures and creation of security. All other provisions of the Act as applicable to a public company will apply except that it may not be required to appoint Debenture Trustee. The company may execute a deed of charge on its assets and register it with the ROC and this is permissible under section 117B of the Act. The requirement of having to create Debenture Redemption Reserve (DRR) will have to be followed as section 117C is a special provision applicable to all companies. This is however subject to relaxations provided in respect to certain categories of companies by the DCA vide its circular No9\2002 dated 18-4-2002.
Companies may also issue unsecured\subordinated debt instruments\obligations. However, such instruments have to be subscribed by qualified institutional investors or others who have given positive consent for subscribing to such unsecured\subordinated debt instruments. In the case of companies issuing debt instruments like debentures having maturity of less than 18 months, there is a facility of creating a charge on the assets of the company, instead of having to create mortgage and appoint Debenture Trustee for its assets. However, where no charge is created as aforesaid, the issuer company is required to ensure compliance with the provisions of companies (Acceptance of Deposits) Rules as such unsecured debentures\bonds are treated as "deposits".
Sections 117 to 123 o f the Act, 1956 provide for special provisions regarding debentures. These provisions are also applicable to both public companies and private limited companies. The provisions of the articles of the company should also be kept in view. The manufacturing and Infrastructure companies can avail of lower percentage of DRR as the DCA circular does not make any distinction between listed and unlisted companies in its circulars referred to above .and the relaxation is also applicable for privately placed debentures by private companies.
Thanx a lot for the answer.... I have been able to find the following conclusion -
the rate of stamp duty for debentures is provided in Article 27 of First Schedule of the Stamp Act, which provides as follows:
27. Debenture (Whether a mortgage debenture or not), being a marketable security transferable
(a)by endorsement or by a separate instrument of transfer
0.05% per year of the face value of the debenture, subject to the maximum of 0.25% or rupees twenty-five lakhs whichever is lower.
Please note if the debentures so issued are not “marketable security” under the Stamp Act then the aforementioned duty shall not be applicable. For the debentures not to be considered as marketable security, the terms of issue of debentures must provide for restriction on transferability of such debentures.
Further, the stamp duty on debentures is a central subject and would not vary with the registered office or place of holding of the board meeting.