The Securities and Exchange Board of India is expected to give brokers more time to pay their turnover fees along with the accumulated interest component. An announcement in this respect will by made by soon by the capital market regulator.
Finance Minister P Chidambaram announced that Sebi had resolved the contentious issue of turnover fees for brokers. The bone of contention is the payment of interest. While Sebi has computed the interest from 1999, the brokers are willing to pay the interest from 2002. Relaxations in this respect are expected.
There has been a lot of uncertainty over the payment of turnover fees for a long time with brokers going up in arms on this issue. In 2002, Sebi had allowed brokers to pay 50 per cent of their liabilities in cash upfront and the remaining amount in 24 equal instalments. Sebi had set March 31, 2003, as the deadline for paying this.
However, extensions were granted and most of the brokers had paid up with the exception of 80 brokers who will have to pay up around Rs 45 crore (Rs 450 million).