Jul 15, 2004
Press Releases
PRESS RELEASE
July 15, 2004
PR No.155/2004
SEBI (Interest Liability Regularisation) Scheme, 2004 for Regularisation of Defaults in Payment of Registration Fees Payable by Stock Brokers in the Cash Segments of Stock Exchanges under the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992
In order to bring a satisfactory solution to the problem of registration fees payable by the brokers in the cash segments of the Exchanges, the Securities and Exchange Board of India has launched the SEBI (Interest Liability Regularisation) Scheme, 2004. This has been launched in the interest of investors in securities and to promote the development of and to regulate the securities market, in exercise of the powers under Section 11 of the Securities and Exchange Board of India Act, 1992 Act read with Regulation 10 and Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.
In terms of the Scheme, if a stock broker pays entire outstanding principal amount of fee as well as 20% of the outstanding interest as on a specified date during the regularization period, the balance outstanding interest will be waived.
The scheme clarifies that the fees - principal and interest - are computed in the manner prescribed in the SEBI (Brokers and Sub-Brokers) Regulations), 1992, based on the turnover data, as provided by the Exchanges to SEBI in the prescribed format (Annexure ‘C’ of the SEBI Circular 30th September 2002). The manner of taking on record the turnover data in respect of brokers required for determination of outstanding fee liability is provided in the Annexure to the Scheme.
The Scheme also clarifies that after the expiry of the scheme, a stock broker having outstanding registration fee liabilities shall be required 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.
All stock brokers having outstanding registration fee liabilities may take full advantage of this one time opportunity.
The scheme is available on the web site of SEBI at www.sebi.gov.in. This has been notified in the official gazette today