SCI Unit Demerger Exempt from Stamp Duty

01 Nov 2023 CW Team

The demerger of the offshore-related business unit from SCI was proposed in order to streamline operations and focus on the core business activities. However, concerns were raised regarding the stamp duty involved in the demerger, which could have added a significant financial burden on the company.

Stamp duty is a tax imposed on the transfer of shares or assets during a demerger. It is calculated based on the value of the shares or assets being transferred. In this case, the demerger of SCI's offshore-related business unit was estimated to be a substantial transaction, making the stamp duty levied a considerable amount.

However, SEBI's decision to exempt the demerger from stamp duty is considered a positive move for SCI. This exemption allows the company to proceed with the demerger without incurring any additional financial obligations. It not only saves cost for SCI but also paves the way for more streamlined business operations.

SCI, being one of the largest shipping companies in India, has been exploring opportunities to diversify its business and expand its presence in the offshore sector. The demerger of the offshore-related business unit will further enable SCI to focus on its core shipping operations and improve efficiency.

Additionally, this exemption sets a precedent for other companies planning demergers in the future. It indicates SEBI's willingness to support such corporate restructuring initiatives by reducing the financial burden on companies.

The decision to exempt the demerger from stamp duty also reflects the government's commitment to ease the financial burden on industries and promote a business-friendly environment. It provides a positive outlook for the shipping and offshore industry, allowing companies like SCI to pursue their growth plans with more confidence.

In conclusion, SEBI's decision to exempt the demerger of SCI's offshore-related business unit from stamp duty is a boon for the company. It not only saves costs for SCI but also encourages other companies to undertake demergers for operational streamlining. This move reflects the government's commitment to supporting businesses and promoting growth in the shipping and offshore industry.

In a significant development, the Securities and Exchange Board of India (SEBI) has decided to exempt the demerger of Shipping Corporation of India's (SCI) offshore-related business unit from stamp duty. This exemption is expected to boost the company's overall growth and expansion plans. The demerger of the offshore-related business unit from SCI was proposed in order to streamline operations and focus on the core business activities. However, concerns were raised regarding the stamp duty involved in the demerger, which could have added a significant financial burden on the company. Stamp duty is a tax imposed on the transfer of shares or assets during a demerger. It is calculated based on the value of the shares or assets being transferred. In this case, the demerger of SCI's offshore-related business unit was estimated to be a substantial transaction, making the stamp duty levied a considerable amount. However, SEBI's decision to exempt the demerger from stamp duty is considered a positive move for SCI. This exemption allows the company to proceed with the demerger without incurring any additional financial obligations. It not only saves cost for SCI but also paves the way for more streamlined business operations. SCI, being one of the largest shipping companies in India, has been exploring opportunities to diversify its business and expand its presence in the offshore sector. The demerger of the offshore-related business unit will further enable SCI to focus on its core shipping operations and improve efficiency. Additionally, this exemption sets a precedent for other companies planning demergers in the future. It indicates SEBI's willingness to support such corporate restructuring initiatives by reducing the financial burden on companies. The decision to exempt the demerger from stamp duty also reflects the government's commitment to ease the financial burden on industries and promote a business-friendly environment. It provides a positive outlook for the shipping and offshore industry, allowing companies like SCI to pursue their growth plans with more confidence. In conclusion, SEBI's decision to exempt the demerger of SCI's offshore-related business unit from stamp duty is a boon for the company. It not only saves costs for SCI but also encourages other companies to undertake demergers for operational streamlining. This move reflects the government's commitment to supporting businesses and promoting growth in the shipping and offshore industry.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..