(1) Chief Executive Officer of a Stock Exchange shall deduct tax at the rate of 15% (fifteen percent) from the Transfer of Shares, declaration of shares on any dividend arising from the transfer of shares by a shareholder of a Stock exchange established under The Exchanges Demutualization Act, 2013 (Act No. 15 of 2013) at the time of exchange of said shares, whichever occurs first.

(2) For the purpose of calculating dividends and receipts of shares under sub-section (1), the acquisition value of the shares prior to the coming into force of The Exchanges Demutualization Act, 2013 (Act No.15 of 2013) shall be taken as the acquisition value of the said shares.