SEBI proposes new fee structure

Mumbai, May 16 (UNI) The Securities and Exchange Board of India (SEBI) today invited suggestions from brokers and members of trading and clearing houses to its proposals to introduce a new fee structure in the cash and derivatives segment in the market.

The three proposals formulated by the D C Anjaria committee set up by the market regulator relate to new brokers in the cash segment, existing and new brokers in the derivatives segment and existing brokers in the cash segment who have already paid or are paying fees for one or more blocks of five financial years, a SEBI release said today.

From its earlier recommendation of fee at Rs 100 per Rs 1-crore of turnover for new brokers in the cash segment, the committee has proposed its reduction to Rs 20 as brokerages have dipped in view of growing competition.

For the existing and new brokers (trading and clearing members) in the derivatives segment, the Anjaria committee has recommended upward revision of fee from Rs 10 to Rs 50 per Rs 1-crore of turnover in a phased manner beginning with Rs 20 per Rs 1-crore.

For the third component comprising of existing brokers in the cash segment, the committee said those paying turnover-based fees for the first block of five financial years under the existing fee structure can opt for new fee structure immediately or after the completion of ten financial years from the date of grant of registration by SEBI.

But those who have already paid fees for the first block of five financial years, the committee suggested they be given the switch-over option immediately or after the completion of the current block of five financial years.

It said even if a broker shifts to the new fee structure on a prospective date, he/she would be required to pay the outstanding fee liability, if any, up to the date of such switch-over.

SEBI said it would use the exchange/clearing corporation mechanism to collect fees from brokers, adding any transaction in securities would attract fees as per proposed new fee structure.

The market regulator said broker will also have to report off-market transactions, adding all transactions in securities undertaken outside the exchange would mean an off-market transaction.

The committee said the exchange/clearing corporation will be used to compute and recover SEBI fees from brokers and trading and clearing members and remit the same to SEBI by the fifth working day of next month.

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