The Securities Exchange Board of India (Sebi) at its board meeting today announced that it will appoint a committee to consider revisions to broker registration fees as laid down in the R S Bhat Committee report.
Sebi said the revision was due "in the light of the present level of brokerage fees", but added that any "such changes in the fee structure would only be applicable prospectively."
Meanwhile, it also announced relaxation in the collection mechanism for overdue registration fees.
The Sebi board took up the issue of registration fees at its meeting today, nine months after the Supreme Court ruled that Sebi had the powers to levy registration fees on brokers.
Sebi said brokers in the cash market will have to pay at least 50 per cent of the principal due (of the registration fees) in the cash market as of October 1 of any financial year, and the balance fees in a period of two years with interest.
But most importantly, Sebi now rectified its earlier notification and has said the brokers who had corporatised their operations after April 1, 1997, will be able to bring forward the registration fees paid in their non-corporate avatar, provided the watchdog has not collected fees from any such broking entity already.
Taking note of the various representations made by brokers, Sebi said it will effect amendments in the relevant rules to clarify the various aspects, and also to give effect to the judgment of the Supreme Court.
It has promised to issue a clarificatory circular on the various issues on which it has obtained internal legal opinion.
