Capital market regulator today suspended two brokers-- Shreenath Kapoor and SLA Securities Ltd-- for failing to pay to registration fees.
In two separate orders, Sebi suspended the certificate of registration of these brokers "till the time the outstanding registration fees are fully paid."
These entities had made an initial payment of Rs 5,000 each in January 1993 towards registration fees. Thereafter, no payments were received from them. The order said they failed to pay the registration fees to Sebi as per the provisions of Brokers Regulations.
As per the Broker Regulations, the minimum fee for the first five years of registration for a stock broker is Rs 5,000 per year without taking into account the turnover.
It is observed that these entities did have turnover for the first five years and accordingly, they have to pay higher fees as per the fee statement.
Taking into account the turnover, Sebi said that Kapoor has to pay registration fees of Rs 4.16 lakh, as on January this year, while SLA Securities has to pay Rs 3.01 lakh.
However, they did not submit any details in respect of payment of fees as per the demand of Sebi.
Further, they did not provide any details of calculation of Rs 5,000 as registration fee contended by it against Sebi's demand.
