Appeal No. 70 of 2005
Date of Decision
13.6.2006
Shilpa Shares & Securities
Versus
1. Securities & Exchange Board of India
2. National Stock Exchange of India Ltd.
Present : Mr. Bharat Merchant, Advocate for the appellant
Mr. Dipan Merchant, Sr. Advocate with Mr. U.N. Das, Advocate for respondent no. 1
Coram:
Justice N.K. Sodhi, Presiding Officer
R. N. Bhardwaj, Member
Per: Justice N.K. Sodhi, Presiding Officer (oral)
The dispute herein pertains to the liability of the appellant to pay registration fee to the Securities and Exchange Board of India (for short the Board). A fee liability statement was sent by the Board to the appellant according to which a total amount of Rs. 4,85,750/- was payable as registration fee. It is this statement which is now under challenge in this appeal filed under Section 15T of the Securities and Exchange Board of India Act, 1992 (for short the Act). The grievance of the appellant is that this fee statement does not furnish the break-up of the turnover and that the fee has been levied at a higher rate. It may be mentioned that the total turnover of a stock broker consists of different components each of which is charged at a different rate for the purpose of determining his registration fee liability. It appears that the appellant had obtained a certificate from the National Stock Exchange of India Ltd. regarding its total turnover and thereafter another statement was obtained. The stock exchange addressed a communication to the Board enquiring as to whether a revised turnover statement could be furnished to which the Board did not respond. Be that as it may, we are of the view that the appellant should approach the National Stock Exchange and obtain a fresh certificate regarding its turnover for the relevant period including the break-up and submit the same to the Board through the exchange. On receipt of the said certificate the Board will re-examine the issue regarding the fee liability of the appellant in accordance with law after affording it an opportunity of hearing. The appellant claims that it is entitled to the benefit of Securities and Exchange Board of India (Interest Liability Regularisation) Scheme, 2004. We cannot decide that issue at this stage. Let this plea be also raised before the Board and the same shall also be decided in accordance with law.
2. The appeal stands disposed of as above with no order as to costs.
Sd/-Justice N.K. SodhiPresiding OfficerSd/-R.N.BhardwajMember