TMI BlogSecurities and Exchange Board of India (Interest Liability Regularisation) Scheme, 2004.X X X X Extracts X X X X X X X X Extracts X X X X ..... inter alia, for registering and regulating the working of stock brokers, sub-brokers etc. and levying fees. Thus, the Act empowers the Board to collect fees for registering and regulating the stock brokers. Further, in terms of section 12 of the Act, no stock broker shall buy, sell or deal in securities except under, and in accordance with the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under the Act. Section 12 (2) provides that every application for registration shall be in such manner and on payment of such fees as may be determined by regulations. The fees received by the Board under the Act are credited to the Securities and Exchange Board of India General Fund. In terms of section 30 of the Act, the Board may, by notification, make regulations to carry out the purposes of the Act. Such regulations may provide, inter alia, for the amount of fees to be paid for certificate of registration granted to a stock broker. 1.1 The SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (the Regulations) were notified on October 23, 1992. Regulation 10 read with Schedule III of the Regulations specifies the registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Given the background of defaults, the Board has decided to introduce a scheme, namely, SEBI (Interest Liability Regularisation) Scheme, 2004 (the Scheme) to provide a one time opportunity to enable the stock brokers in the Cash segments of stock exchanges to regularize their defaults. Therefore, in exercise of the powers under Section 11 of the Act read with Regulation 10 and Schedule III of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, the Board hereby introduces the Scheme viz. SEBI (Interest Liability Regularisation) Scheme, 2004. Under the Scheme, if the defaulting broker pays the entire outstanding principal amount of fee, if any, and 20% of the outstanding interest during the regularization period, he will not be required to pay the balance 80% of outstanding interest. 2.1 It is clarified that after the expiry of the scheme, a broker having outstanding registration fee liabilities towards the Board shall be liable to pay entire outstanding amount, including interest, as per the Regulations and shall also be liable for appropriate enforcement action as permissible under the Act and the Regulations framed thereunder. It is further clarified that in terms of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for determination of outstanding fee liability is provided in Part II of this Scheme. 3.5 The details of the Scheme are available on the website of SEBI at www.sebi.gov.in and also with the stock Exchanges. 3.6 For clarifications, if any, the stock broker may contact Ms. Anita Kenkare, Deputy General Manager / Mr. U. Venugopal, Assistant General Manager, Fee Cell, Market Intermediaries Registration and Supervision Department, Securities and Exchange Board of India, 29th Floor, World Trade Centre, Cuffe Parade, Mumbai- 400005, Tel: 22164428/29/38/49. Part - II Manner of taking Turnover Data on Record 1. Following the Hon ble Supreme Court judgement in February 2001, the Board has amended the Regulations and from time to time clarified several issues relating to determination of registration fees through issue of circulars. The Board has also specified the Exchange certification of the data in specified format (Annexure C of the SEBI Circular dated September 30, 2002) in order to ensure integrity of the data. 2. The Board has followed up vigorously to obtain turnover data in respect of all brokers, past and present, for the relevant years in order to enabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.07.2004 2 Exchanges to submit the turnover data in respect of data gaps as per their own records 02.08.2004 3 The Board to take on record the turnover data forwarded by the Exchanges as at (2) above 18.08.2004 4 The Board to forward the fee liability statements in respect of stock brokers to the Exchanges 03.09.2004 5 Exchanges to report back discrepancies noted, if any, from the turnover reported by the Exchange or in the fees liability computation, to the Board 17.09.2004 6 The Board to make corrections, if any, based on reports of the Exchanges as at 5 above 01.10.2004 7 The Board to forward outstanding fee liability statements to Exchanges, after correction as at 6 above 08.10.2004 8 Regularisation Period 15th October 2004 to 15th November 2004 5. Specified Transactions As per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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