Securities and Exchange Board of India (SEBI)
EXECUTIVE DIRECTOR
SECONDARY MARKET DEPARTMENT
May 21, 1996
To,
The Executive Director
(all recognised stock exchanges)
Dear Sir,
Reg :Recovery of outstanding fee from defaulting members.
As you are aware, members of the Stock Exchanges are required to pay registration fees to SEBI, calculated in accordance with Schedule III of SEBI (Stock brokers and Sub-brokers) rules and regulations, 1992.
In case of defaulting members, it is generally noticed that the SEBI registration fee has not been paid for one or more financial years. The bye-laws of the exchange do not have any provision whereby these outstanding dues can be recovered from the auction proceeds of the card.
It is therefore suggested that a provision in the bye-laws may be incorporated regarding the use of the auction proceeds, whereby claims of SEBI will be treated on par with the claims of the exchange and the clearing house.
You are requested to take up the matter in your Governing Board meeting for consideration and suitable amendment in the Bye-laws. In case of any disagreement, the same can be conveyed to SEBI within two months.
Please treat this as urgent.
Yours faithfully,
sd/-
M.D. PATEL
