its no where written in the law that stamp duty is not charged on electronic transfer of shares.
the fact is that stamp duty is applicable on transfer of shares. it includes both, physical andd electronic.
in case of physical share transfer, the stamp duty is paid as agreed between the parties. however, in case of the electronic transfer, the broker has to pay consolidated stamp duty on a periodical basis and in return he recovers it from the parties in equal proportion.
Mr. Diwakar said that it is charged on issuance of broker note. let me clarify that there is no relation of both things. In any case the broker has to issue contract note.
The issuance of broker / contract note is as per SEBI Regulations and Stamp Duty comes under the Stamp Duty Act.
CA. Amol G. Kabra