Business Daily from THE HINDU group of publications
Wednesday, Jul 05, 2006
Regulatory Bodies & Rulings
Markets - Financial Services
Broad plan outline
Registration fees for brokers would be brought down and rationalised, while that for FIIs/sub-accounts would have to be doubled.
For certain other market intermediaries, such as sub-brokers, debenture trustees and underwriters, the registration fees may remain unchanged.
Kolkata , July 4
The Securities and Exchange Board of India is set to revise and rationalise a whole range of registration fees for primary and secondary market entities after nine years.
The SEBI Chairman, Mr M.V. Damodaran, confirming the development, told Business Line over phone from Mumbai on Tuesday that "a set of fees were being revised first time after the last revision in 1997".
He, however, said the final details regarding each category of market intermediaries and entities are being worked out and would shortly be announced.
According to sources, with the last date for comments on the proposed registration fees structures for brokers expiring on June 10, preparations are already on to incorporate certain suggestions before the formal announcement.
Sources said that according to the broad plan outline, the registration fees for brokers would be brought down and rationalised, while that for FIIs/sub-accounts would have to be doubled. For certain other market intermediaries, such as sub-brokers, debenture trustees and underwriters, the registration fees may remain unchanged.
Minor changes likely
Indications are that SEBI would bring about some minor amendments in the proposed fee structure for the new and existing brokers in the cash and derivatives segments as also for traders in the debt segment.
Mr Damodaran clarified that registration fee for the FIIs was being restored to the level before 1997, that is of $10,000 per annum from $5,000. Annual fee for a sub-account is to be raised to $2,000 from $1,000.
Sub-account includes those overseas body corporates, foreign individuals, institutions, funds or portfolios established or incorporated outside India, on whose behalf investments are made in India by an FII.
According to SEBI, an FII means an entity established or incorporated outside India proposing to make investments in India. Pension funds, mutual funds, insurance companies, investment trusts, banks, university funds, endowments, foundations, charitable trusts/societies, AMCs, institutional portfolio managers, trustees and power of attorney holders of overseas investors are also eligible to be registered as FIIs in India.
The primary market intermediaries, such as merchant bankers, registrars and share transfer agents, and bankers to an issue may also have to pay higher registration fees. In some cases, SEBI sources suggested, the regulator might reduce validity time for the registration from five years to three years.
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