Schedule - III - Fees - Securities and Exchange Board of India (Stock Brokers) Regulations, 1992

SCHEDULE III Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992 [Regulation 10] I. Fees to be paid by the Stock Broker. 1. Every stock broker shall subject to paragraphs 2 and 3 of this Schedule pay registration fees in the manner set out below: (a) where the annual turnover does not exceed rupees one crore during any financial year, a sum of rupees five thousand for each financial year; (b) where the annual turnover of the stock-broker exceeds rupees one crore during any financial year, a sum of rupees five thousand plus one hundredth of one per cent of the turnover in excess of rupees one crore for each financial year; 1 [(bb) Notwithstanding anything contained in clause (b) it is clarified that the fee shall be recoverable as computed as under : (i) in respect of jobbing transactions that is to say all transactions which are squared off during the same day which have not been undertaken by the broker on behalf of clients, the fees shall be computed at the rate of one two hundredth of one per cent in respect of the sale side of such transactions; (ii) in respect of transactions in Government securities, the bonds issued by any Public Sector Undertaking and the units traded in a similar manner, the fee payable shall be computed at the rate of one thousandth of one per cent of the turnover; (iii) in case of carry forward, renewal or badla transactions the fees shall be computed at the rate of one hundredth of one per cent of the turnover and the reverse off setting transactions shall not be counted as part of the turnover; (iv) if brokers are carrying out transactions in securities without reporting them to the stock exchange, those transactions shall be taken into account for the purpose of turnover and the fees shall be computed at the rate of one hundredth of one per cent of the turnover; (v) the trade put through on other stock exchanges shall be included in the turnover of that exchange if market for that security does not exist on the exchange of which he is a member and the fees shall be computed at the rate of one hundredth of one per cent of the turnover; (vi) activity such as underwriting and collection of deposits shall not be taken into account for the purpose of calculating the turnover;] (c) after the expiry of five financial years from the date of initial registration as a stock-broker, he shall pay a sum of rupees five thousand for 2 [every] block of five financial years commencing from the sixth financial year after the date of grant of initial registration to keep his registration in force. 2. Fees referred to in clauses (a) and (b) of paragraph 1 above shall be paid- (a) in respect of the financial year 1992-93 within one month of the commencement of these regulations ; (b) in respect of the financial year beginning on the 1st day of April, 1993 and the following financial years, on or before the first day of October of the financial year to which such payment relates, and such fees shall be computed with reference to the annual turnover relating to the preceding financial year. 3. Every remittance of fees referred to in clauses (a) and (b) of paragraph 1, shall be accompanied by a certificate as to the authenticity of turnover on the basis of which fees have been computed duly signed by the stock exchange of which the stock broker is a member or by a qualified auditor or as defined in section 226 of the Companies Act, 1956. Explanation.-For the purpose of paragraphs 1, 2 and 3, annual turnover means the aggregate of the sale and purchase prices of securities received and receivable by the stock broker on his own account as well as on account of his clients in respect of sale and purchase or dealing in securities during any financial year. 3 [4. Where a corporate entity has been formed by converting the individual or partnership membership card of the exchange, such corporate entity shall be exempted from payment of fee for the period for which the erstwhile individual or partnership member, as the case may be, has already paid the fees subject to the condition that the erstwhile individual or partner shall be the whole-time director of the corporate member so converted and such director will continue to hold a minimum of 40 per cent shares of the paid-up equity capital of the corporate entity for a period of at least three years from the date of such conversion.] 4 [Explanation : It is clarified that the conversion of individual or partnership membership card of the exchange into corporate entity shall be deemed to be in continuation of the old entity and no fee shall be collected again from the converted corporate entity for the period for which the erstwhile entity has paid the fee as per the regulations.] 5 [4A. Where a stock exchange has formed a subsidiary company, which has become a stock broker of another stock exchange, then the turnover of the stock broker who is buying, selling or dealing in securities, through the subsidiary company as a sub-broker, shall be excluded from the turnover of the subsidiary company, only if the stock broker has paid five years turnover based fees plus fee for a block of five years in accordance with the regulations, on the concerned stock exchange which has formed the subsidiary company.] 6 [5. If a stock broker fails to remit fees in accordance with Paragraphs 1 and 2, he shall be liable to pay interest at 15% per annum for each month of delay or part thereof : Provided that the liability to pay interest as aforesaid may be in addition to any other action which the Board may take as deemed fit against the stock broker under the Act, or the Regulations : Provided further that if the liability of the stock broker on account of payment of interest works out to be ₹ 100 or less the same may be waived off by the Board taking into consideration the administrative cost involved in recovering the said amount.] II. 12 [ **** ] 13 [ III. Manner of Fees to be paid. The fees specified above shall be paid on or before the 1st day of October each year payable by way of direct credit into the bank account through NEFT/ RTGS/IMPS or online payment using the SEBI Payment Gateway or any other mode as may be specified by the Board from time to time. ] 11 [IV. Non-applicability to stock brokers governed by Schedule V. The provisions of this Schedule shall not apply to stock brokers to whom Schedule V applies, from the time when it becomes so applicable.] ************ NOTES:- 1 Inserted by the SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2002, w.e.f. 20-02-2002. 2 Substituted for a by the SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2002, w.e.f. 20-02-2002. 3 Inserted by the SEBI (Stock Brokers and Sub-brokers) (Second Amdt.) Regulations, 1998, w.e.f. 21-01-1998. 4 Inserted by the SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2002, w.e.f. 20-02-2002. 5 Inserted by the SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2000, w.e.f. 30-08-2000. 6 Inserted by the SEBI (Stock Brokers and Sub-brokers) (Third Amdt.) Regulations, 1998, w.e.f. 16-12-1998. 7 Substituted by the SEBI (Stock Brokers and Sub-brokers) (Third Amdt.) Regulations, 2006, w.e.f. 31-07-2006 8 Substituted by the SEBI (Payment of Fees) (Amendment) Regulations, 1995 , w.e.f. 28-11-1995 9 Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6-3-2017 10 Substituted for the word Bombay by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6-3-2017 11 Substituted by the SEBI (Stock Brokers and Sub-brokers) (Second Amdt.) Regulations,2013 w.e.f 27.09.2013. Prior to substitution Clause IV read as- IV. Non-applicability to stock brokers governed by Schedule IIIA. The provisions of this Schedule shall not apply to stock brokers to whom Schedule III-A applies, from the time when it becomes so applicable.] 12. Omitted vide Notification No. SEBI/LAD-NRO/GN/2018/27 dated 30-07-2018 w.e.f. 01-04-2019 before it was read as 7 [Fees to be paid by sub-brokers II. Every sub-broker shall pay fees in the manner set out below : (a) Where a sub-broker was granted certificate of registration by the Board before August 1, 2006 :- (i) he shall pay a sum of ten thousand rupees for the block of five financial years commencing from April 1, 2007; and (ii) after the expiry of the said block of five financial years, he shall pay a sum of five thousand rupees for every subsequent block of five financial years. (b) Where a sub-broker is granted certificate of registration by the Board on or after August 1, 2006 :- (i) he shall pay a sum of ten thousand rupees for the block of five financial years commencing from the financial year in which registration has been granted; and (ii) after the expiry of the said block of five financial years, he shall pay a sum of five thousand rupees for every subsequent block of five financial years. (c) Every sub-broker shall pay fees under sub-clause (a) or sub-clause (b), as the case may be, within such time as may be specified by the Board.] 13. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/121, dated 07-02-2023 , w.e.f. 01-04-2023 before it was read as: III. Manner of Fees to be paid. 8 [The fees specified above shall be paid on or before the 1st day of October each year payable 9 [by way of direct credit in the bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI or] by draft in favour of The Securities and Exchange Board of India at 10 [Mumbai], or at the respective regional office.]