9th September 2005

NOTICE

 

Sub: Manner of credit of fees to the brokers account

 

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.

 

Quote

 

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,

 

Sub: Manner of credit of fees to the brokers account

 

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 brokerís 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 brokerís principal, if any,

b)      Then, towards erstwhile broker(s)í principal, if any, (wherever applicable)

c)      Then, towards the current brokerís interest, if any, and

d)      Then, towards the erstwhile broker(s)í interest, if any, (wherever applicable)

 

 

Yours faithfully,

Anita Kenkare

 

Unquote

 

 

††††††††††† 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