According to the Indian Stamp Act, 1899, the Central Government levies stamp duty on the exchange of instruments, where an instrument is defined as any document by which any right or liability is created, or is purported to be created, transferred, limited, extended, extinguished or recorded. Under the Companies Act, 1956, stamp duty is payable when a transfer deed is executed for transfer of shares, which is done using Form 7-B. Shares are moveable propertySection 44 of the Companies Act, 2013, mentions that shares shall be movable property, transferable in the manner prescribed by the Articles of Association of the company. Shares of public limited companies are freely transferable. A duly executed and stamped transfer deed transfers ownership of shares by delivery of transfer deed along with share certificate. ArticleDuty62. Transfer (whether with or without consideration)-(a) of shares in an incorporated companyor other body corporate;25 paise for every Rs. 100or part thereof of the value of the share(e) of any trust-property without consideration from one trustee to another trustee or from a trustee to a beneficiaryRs. 5 or such smaller amount as maybe chargeable under clauses (a) to (c) of this Article. Therefore, registering the transfer of shares in the name of the buyer share transfer stamps are required at 0. 25% ad valorem. An ad valorem tax is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax.