Uniform stamp duty for financial instruments may push M&A cost: Experts

Such a move could drag states' ability to woo investors , say experts

A process to streamline stamp duty collection for financial instruments, as proposed in the interim Budget, may have multiple effects. It is likely to affect states, brokers, companies closing deals and those looking to raise debt capital.

The cost of raising debt through debentures, and carrying out mergers and acquisition deals may be higher than before. Brokers are likely to see operational efficiency but more friction in terms of costs. States’ ability to attract stock market activity may also come under question, say experts. 

The move comes even as the stock market bellwether has been touching record highs over the