ANMI engages WBNUJS to study Sebi's penalty regime

The Association of National Stock Exchanges Members of India (ANMI) has engaged the West Bengal National University of Juridical Sciences (WBNUJS) to carry out a study on Sebi's penalty regime as it feels 'over-regulation' can hinder the growth of capital markets.

"We have engaged WBNUJS to carry out a study on Sebi's penalty regime," ANMI President S K Rustagi told PTI.

He said the report, 'SEBI's monetary Penalty Regime: Time for Overhaul', is expected in a month and the same would be submitted to the central government.

Citing an example, ANMI officials said not uploading a client's KYC in time attracted a penalty of as high as Rs 15 lakh.
 

At a time when brokers' revenues are under stress, compliance and transaction costs are eating away their margins, Rustagi said, quoting an internal study by ANMI.

Exchange transaction cost, service tax on brokerages, SEBI transaction fees and Security Transaction Tax are levied on stock transactions.