The Hindu Business Line : SEBI offers 80 pc interest waiver to brokers on registration fee

THE Securities and Exchange Board of India (SEBI) has slashed the interest liability to be paid by stockbrokers on the unpaid portion of the turnover-based registration fee that was introduced in 2002.

The decision to reduce the fees has been taken to lure those brokers who were not paying up the amount due from them for the past few years.

The new proposal involves a one-time waiver of 80 per cent of the broking firm's interest liability if it pays the entire unpaid principal amount along with only 20 per cent of the interest liability.

SEBI had calculating the interest liability at the rate of 15 per cent annually.

The capital market regulator had proposed to levy a registration fee based on the five-year turnover of a broker that amounted to about Rs 1,000 for every Rs 1 crore turnover.

The move, that was based on the recommendations from the R.S.Bhatt Committee, applied to brokers operating in the cash segment.

According to estimates made at the time of introducing the fee, the board would have collected a total of around Rs 800 crore from stockbrokers following the Supreme Court verdict. Of

this, around Rs 450 crore will come from NSE members alone followed by BSE and CSE.

A large number of brokers have not yet paid their dues fully but exact figures couldn't be ascertained.

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