Securities and Exchange Board of India (SEBI)
EXECUTIVE DIRECTOR
SMD/ED/2132/96
June 04, 1996
To,
President / Executive Director
All Stock Exchanges
Dear Sir,
Payment of SEBI Registration fees by members of the Exchange
As you are aware all the members of the Stock Exchanges are required to pay registration fees as a condition subject to which a certificate of registration is granted under SEBI (Stock Brokers and Sub-brokers) Rules and Regulations, 1992 . While receiving the fees, certain irregularities enumerated below have been observed at our end:
Fees are remitted to SEBI by instruments other than Demand Draft. It has been specified in the SEBI’s regulations that fee will be remitted only by Demand Draft.
In some cases it has been observed that Exchanges are forwarding the fees without certifying the turnover and attaching computation statement of fees liability.
In certain cases underpayment of fees has been noticed.
In view of the above your are requested to ensure that :
The Member invariably sends fees through Stock Exchange rather than sending directly to SEBI.
The fee remittance is supported with fee computation statement certified by the Exchange. Fee is to be computed in accordance with Schedule III of SEBI (Stock Brokers and Sub-Brokers) Rules and Regulations, 1992 and Expert Committee’s recommendations in the matter.
If the brokers have approached the courts and received any relief, the brokers will be required to pay the fees as per the court orders . Otherwise fees will have to be remitted as per the prevailing provision.
“Off the floor” transactions are necessarily taken into account while computing total liability if necessary certificate from a qualified auditor may be obtained and attached.
The fees are remitted only Demand Draft in the name of Securities and Exchange Board of India, payable at Bombay.
You may like to bring to the notice of members that non-payment of requisite fee in time will attract penal provision as prescribed under SEBI (Stock Brokers and Sub-Brokers) Rules and Regulations, 1992
Yours cooperation in the matter is solicited.
Yours faithfully,
sd/-
M.D. PATEL
