Multiple choice

Which of the following State governments decided to scrap Stamp Duty on government securities after a meeting with the bankers?

  1. Delhi

  2. Karnataka

  3. Uttar Pradesh

  4. Maharashtra

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Maharashtra became the first state to abolish stamp duty on government securities to promote the debt market and reduce transaction costs. This decision was taken to make Mumbai (the state capital) more attractive for bond trading and strengthen its position as India's financial hub. The move aimed to increase liquidity in the government securities market.