BOI Shareholding to collect stamp duty
By Mumbai: | 16 Jun 2004
Mumbai: The Government of Maharashtra has granted BOI Shareholding the right to collect stamp duty after it decided to outsource stamp duty collection from banks and financial Institutions in April 2004.
BOI Shareholding, a 51: 49 joint venture between the Bank of India (BOI) and BSE Mumbai was established in 1989 and popularly known as BSE Clearing House approached the stamp authorities of the government of Maharashtra to be considered eligible for franking of stamp duty. The Inspector General of Registration & controller of Stamps-Pune granted the license for franking to BOI.
The government has agreed to pay 1 percent commission to BOI on stamp duty franked. Hence from being a mere clearing house in 1989 which carried out clearing and settlement of physical shares BOI now provides a number of services in a highly competitive and challenging business environment.
BOI expects to become a Professional Clearing Member (PCM) and Intermediary for Securities Lending and Borrowing Programme — to be launched by SEBI very soon--this financial year.
The IT team of BOI is well equipped and geared for further transition to T+1 and settlement of financial transactions through Real Time Gross Settlement.
BOI was awarded ISO 9000:2001 certificate by the International Certifications Services (ASIA) in 2002. The processes carried out in the company are standardized. With the development of capital markets the company grabbed every opportunity to diversify business and took up related activities like depository participants, collection of stamp duty, extending services like auto DO and direct pay-out to clients.
