There are procedural positives for brokers and for markets overall. They do not have to worry about multiple rates and multiple states to interface with. There is a uniform rate that is charged and paid to the stock exchange. Secondly, most traders and investors are also likely to benefit. The only states where active traders would lose out are Andhra Pradesh, Haryana and Telangana where there is a cap on stamp duty. Karnataka traders could also lose out due to lower rates currently. However, in the active markets of Maharashtra, Gujarat and West Bengal, this move is likely to bring down the overall stamp duty liability for traders and also for investors.

However, there are two areas to watch out for here. In the fine print of uniform stamp duty announcement two things will strike you. Firstly, all proprietary trades of brokers will now be subject to stamp duty. Currently, brokers do not have to prepare contract notes for prop trades but now contract notes will have to be prepared and stamp duty also paid. That will add to prop trading costs. Secondly, off-market demat transfers will also come under the purview of stamp duty. So shares gifted to relatives or even shares transferred in the case of unlisted shares will entail payment of stamp duty on stated consideration. That will certainly be an added cost for traders and also to investors!