The Hindu Business Line : SEBI proposes lower fee for brokers

Though the new structure is based on the recommendations of the Committee headed by Mr D.C. Anjaria, SEBI has proposed a lower fee than what has been recommended by the committee.

For new brokers in the cash segment, the committee had suggested a fee of Rs 100 for a turnover of Rs one crore. However, in view of the fall in the rate of brokerage, SEBI has reduced the fee to Rs 20 for Rs one crore turnover.

For the existing brokers in the cash segment, SEBI said: "The amount of the fees on the existing brokers would be such that it will not impose significant financial burden on the existing brokers, while at the same time ensure that all brokers in the cash segment are placed on an equal footing."

As per this, existing brokers who are paying turnover based fees for the first five financial years of their formation, would be given an option to switch over to the proposed new fee structure immediately or after the completion of 10 years from the grant of registration by the Board. Those who have already paid the fees for the first 5 years, would be allowed to switch over to the new structure immediately or after 5 years.

For existing and new brokers (trading and clearing members) in the derivatives segment, SEBI has proposed to hike the fees from Rs 10 per Rs one crore turnover to Rs 20 per Rs one crore turnover. This is against the committee's proposal of Rs 50 per Rs one crore turnover, SEBI said in a release on Tuesday.

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