Meet On Turnover Fees Inconclusive

The meet was convened by the BSE and attended by senior members of the Calcutta, Ahmedabad, Hyderabad stock exchanges and also the NSE.

According to a Securities and Exchange Board of India (Sebi) directive issued back in 1993, brokers across the country should pay up one per cent of one per cent of their net turnover every year to the market regulator as turnover fees.

Vinod Gupta, president, association of NSE members of India, said once the formula is finalised, a brokers' representation would meet Sebi and put forward the committee's proposal. BSE president M G Damani said the panel will meet again to find out a suitable formula. The meeting was attended by Ajit Dey and D K Singhania of CSE and senior exchange officials from Ahmedabad and Hyderabad.

 

Yesterday's meeting is significant because any broker who is not a member of the BSE brokers' forum is likely to come under Sebi turnover fee net.

This is because Sebi has clarified that the benefit of the stay order obtained from the Bombay High Court in 1993 against turnover fee applies only to the petitioner brokers and not to the broking community in general.