SEBI hikes fee for market intermediaries

The revised fees structure is essentially to help in strengthening the investor awareness and education measures

May 26, 2014 8:27 IST | India Infoline News Service
SEBI (Securities and Exchange Board of India) has notified new norms that will make market intermediaries and corporates to pay higher fees to the regulator.
The revised fees structure is essentially to help in strengthening the investor awareness and education measures, enlarging reach among investors / potential investors through regional and new local offices, enhancing focus on capacity building and raising standards of supervision and enforcement function in the market place such as strengthening market surveillance and investigation function, SEBI said in a notification on Friday.
It has been notified that fees for mutual funds, stock exchanges, brokers as also for the listed and to-be-listed companies for filing of offer documents, rights issues and takeover has been revised.
While revising the fees, care has been taken to ensure that the impact on retail investors is minimal. For example, for a cash market transaction of Rs. 1 crore the fees has been enhanced from Rs. 10 to Rs. 20 i.e. the total cost for the investors for such a transaction will change from Rs. 33,330 to Rs. 33,340. The fee collected by SEBI will be only 6 basis point of such cost of transaction.
As per the notification, the regulatory fee for exchanges having turnover in excess of Rs 10 lakh crore at "Rs 1 crore plus 0.00006 per cent on turnover in excess of Rs 10 lakh crore". The overall regulatory fee would be capped at Rs 20 crore.
SEBI said that mutual funds having average assets under management (AAUM) of up to Rs 10,000 crore will have to pay an "annual fee of Rs 0.0015 per cent of the AAUM." This is subject to a minimum of Rs 2.5 lakh and a maximum of Rs one crore. For filing rights issue documents, a fee of Rs 50,000 would be charged for an issue size of up to Rs 10 crore, in case of a size of over Rs 10 crore, the company would have to pay an amount of 0.05 per cent of the issue size.
SEBI said that a fee of 0.0025 per cent of issue size would be charged, in respect of every draft offer document filed by a lead merchant banker. For stock brokers, a fee of Rs 20 per one crore of turnover would be charged.

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