9911796707
TMI BlogSecurities and Exchange Board of India (Interest Liability Regularisation) Scheme, 2004.X X X X Extracts X X X X X X X X Extracts X X X X ..... 1992, namely:- "SEBI (Interest Liability Regularisation) Scheme, 2004" Part - I 1.0 Under section 11 of the Securities and Exchange Board of India Act, 1992 (the Act) it is the duty of the Securities and Exchange Board of India (the Board) to protect the interests of investors and to promote the development of, and to regulate the securities market by such measures as it thinks fit. The measures may provide, inter alia, for registering and regulating the working of stock brokers, sub-brokers etc. and levying fees. Thus, the Act empowers the Board to collect fees for registering and regulating the stock brokers. Further, in terms of section 12 of the Act, no stock broker shall buy, sell or deal in securities except under, and in accordanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble by brokers. The Bhatt Committee submitted its report on December 18, 1992. It observed that the turnover was a fair basis for determination of registration fees and the incidence of fees prescribed by Board was not unreasonable. It, however, recommended concessional rates of fees for certain types of transactions. The Central Government and the Board accepted the recommendations of the Committee in principle. The Board advised the brokers on January 7, 1993 to pay fees in the manner recommended by the Bhatt Committee. 1.2 The stock brokers had been contesting the fees liability before various High Courts. Finally the Hon'ble Supreme Court of India, vide its judgement dated February 01, 2001 in the matter of BSE Brokers Forum vs. SEBI, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viz. SEBI (Interest Liability Regularisation) Scheme, 2004. Under the Scheme, if the defaulting broker pays the entire outstanding principal amount of fee, if any, and 20% of the outstanding interest during the regularization period, he will not be required to pay the balance 80% of outstanding interest. 2.1 It is clarified that after the expiry of the scheme, a broker having outstanding registration fee liabilities towards the Board shall be liable 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 thereunder. It is further clarified that in terms of regulation 27 of the Regulations, a stock broker ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment 29th Floor, World Trade Centre Cuffe Parade, Mumbai- 400005." While making payment, the stock broker shall: (i) quote his registration number or the registration number(s) of the erstwhile broker(s) for whom the payment is made; (ii) quote his name or the name(s) of erstwhile broker(s) for whom the payment is made; and (iii) indicate the break up of the payment towards principal and interest and towards its own liabilities or the liabilities of erstwhile broker(s). 3.4 The fee liability shall be computed in the manner specified in the Regulations, based on the turnover data, as provided by the Exchanges to the Board in the prescribed format (Annexure 'C' of the SEBI Circular 30th September 2002). The manner of taking on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... okers to the Exchange. The Exchanges were advised to submit gross turnover data based on their own records, if the stock brokers do not submit turnover data, after giving sufficient notice and intimating the stock brokers concerned that they would not be eligible for concessional rates of fee and that fee at a flat rate of 0.01% would be levied on the gross turnover reported by the Exchanges to the Board. Therefore, those stock brokers, who did not report turnover with break up to Exchanges and the Exchange submitted the turnover data based on its own records, will not be entitled to any concessional rates of fees. 3. In accordance with the above policy, the Board has been receiving turnover data from the Exchanges and taking them on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 4 The Board to forward the fee liability statements in respect of stock brokers to the Exchanges 03.09.2004 5 Exchanges to report back discrepancies noted, if any, from the turnover reported by the Exchange or in the fees liability computation, to the Board 17.09.2004 6 The Board to make corrections, if any, based on reports of the Exchanges as at 5 above 01.10.2004 7 The Board to forward outstanding fee liability statements to Exchanges, after correction as at 6 above 08.10.2004 8 Regularisation Period 15th October 2004 to 15th November 2004 5. Specified Transactions As per SEBI circular dated September 30, 2002, the specified transactions (compulsory carry forward, reversal badla, reverse 6A/7A transactions) are not to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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