Section 40. Exemption from compulsory registration of instruments.

Nothing in clauses (b) and (c) of sub-section (1) of section 17 of 1[the Registration Act,1908 (16 of 1908)] shall apply to–– (a) any instrument relating to shares in a co-operative society, notwithstanding that the assets of society consist in whole or in part of immovable property ; or (b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property except in so far as it entitles the holder to the security afforded by a registered instrument where by the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holder of such debentures ; or (c) any endorsement upon or transfer of any debentures issued by any such society.