Legal Question in Banking Law in India

A Private Ltd Company has availed certain credit facility from a Nationalized Bank. Subsequently If the said company became Public Ltd Company , whether fresh stamp duty is to be paid for executing the bank documents?


Asked on 10/29/15, 10:15 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

30.10.2015

Dear Sir / Madam,

No. There is no need to pay Stamp Duty again for executing the bank documents.

Regards,

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Answered on 10/30/15, 6:19 am
Vivek Mapara Vivek N. Mapara

Sir

Change of Private Limited Company in to Public Company do not change the status or entity of the Company. The Company i.e. the Juristic Entity is the same, only its structuring is changed. By conversion of Private in to Public, no new entity comes in to being.

So there is no requirement to execute any fresh CC document, or to pay stamp duty on the same.

Feel Free to ask should you have any questions.

Regards

Vivek N Mapara

vnmlaws.com

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Answered on 10/30/15, 9:48 am


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