The Hindu Business Line : SEBI launches new scheme for brokers to pay dues

THE Securities and Exchange Board of India has launched the SEBI (Interest Liability Regularisation) Scheme, 2004, in order to bring a satisfactory solution to the problem of registration fees payable by the brokers in the cash segments of the exchanges.

"If a stockbroker pays the entire outstanding amount of principal as well as 20 per cent of the outstanding interest as on a specified date during the regularisation period, the balance outstanding interest will be waived," states a SEBI press release.

The scheme clarifies that the fees - principal and interest - are computed in the manner prescribed in the SEBI (Brokers and Sub-Brokers Regulations), 1992, based on the turnover data, as provided by the exchanges to SEBI in the prescribed format.

The manner of taking on record the turnover data in respect of brokers required for determination of outstanding fee liability is provided in the annexure to the scheme, states the release.

"The Scheme also clarifies that after the expiry of the scheme, a stockbroker having outstanding registration fee liabilities shall be required to pay entire outstanding amount, including interest, as per the Regulations and shall also be liable for appropriate enforcement action as permissible under the Act and the Regulations framed there under," it said.

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