9th September 2005
Members are hereby informed that the Exchange has received a letter from SEBI vide letter Ref. No. MIRSD/Fee Cell/ 48892/05, dated September 06,2005 regarding manner of appropriation of SEBI registration fees to brokers account. The contents of the letter are reproduced below for the information of members.
Deputy General Manager MIRSD/Fee Cell/AK/48892/05
Market Intermediaries Regulation September 06,2005
And Supervision Department (Fee Cell)
To
The Executive Director/Managing Director
All Exchanges
Dear Sir / Madam,
It has been observed that many brokers do not indicate the break-up of the amount into outstanding principal and interest while remitting the payments to SEBI towards fees payable under the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.
You are advised to bring to the notice of the members of your exchange, that in future, payments towards fees would be apportioned to the broker’s accounts in the following manner where it is not sufficient to meet the entire outstanding fee liability:
1. Where broker has provided the bifurcation, the payment would be apportioned as per the break up given by the broker irrespective of the position in the account;
2. Where broker does not provide the break up while making payment, the payment would be credited in the following order:
a) First towards current broker’s principal, if any,
b) Then, towards erstwhile broker(s)’ principal, if any, (wherever applicable)
c) Then, towards the current broker’s interest, if any, and
d) Then, towards the erstwhile broker(s)’ interest, if any, (wherever applicable)
Yours faithfully,
Anita Kenkare
In view of the above, members are requested to note the above and henceforth specifically indicate the break-up of amount paid into principal and interest accordingly.
Yours Faithfully
Secretary