Chief General Manager
Secondary Market Department
SMD/DBA-II/Cir-01/178 /03
January 03, 2003
To
The Executive Director/Managing Director
All Stock Exchanges
Dear Sir/ Madam,
Sub: Time frame for payment of atleast 50% of the principal fees payable by stock brokers
Subsequent to the judgement of the Hon’ble Supreme Court dated February 01, 2001 all Exchanges were advised vide letter dated March 19, 2001 to inform their members to pay fees based on turnover, payable under Regulation 10 of SEBI ( Stock Brokers & Sub-Brokers ) Regulations 1992 immediately. Further as directed by the Hon’ble Supreme Court in the said judgement, SEBI amended the SEBI (Stock Brokers & Sub-brokers) Regulations 1992 vide notification dated February 20, 2002 to incorporate the recommendations of the Expert Committee appointed for interpretation of turnover.
Following the judgement of the Hon’ble Supreme Court, SEBI received representations from the brokers in their individual capacities as well as their representative capacity. The representations were considered by SEBI and vide circular ref SMD/Policy/Cir-07/2002 dated March 28, 2002, the Exchanges were advised to bring to the notice of their members that fees payable to SEBI should be remitted in conformity with the regulations.
Though the brokers were legally bound to pay the fees as per the regulations, vide clause (v) of Part A of the said circular, it was also informed that those brokers, who had not paid fees, should pay atleast 50% of the principal due in the cash market and give an undertaking to pay the balance fees within a period of two years along with interest in the format as given in the Annexure C of the said circular.
Exchanges are advised to inform their members that the facility of payment of 50% of principal fees payable by them in conformity with SEBI (Stock Brokers & Sub-brokers) Regulations 1992 amended as on February 20, 2002 read with SEBI circular dated March 28, 2002 and circular dated September 30, 2002 would not be available after March 31, 2003.
You are requested to bring the above to the notice of all members of your Exchange.
Yours faithfully,
(M. S. Sahoo)
