Some 80 brokers who disputed their turnover fee liability may wind up having to fork out a total of Rs 40-45 crore (Rs 400-350 million). The brokers may have to pay an additional Rs 45 lakh (Rs 4.5 million) each on average.
The Haribhakti & Company report on the vexed issue of turnover fees to be paid by Bombay Stock Exchange brokers has loaded this liability on the brokers.
The uncertainty regarding payment of turnover fee has been simmering for long, with some brokers having agitated against the issue. In 2002, the Securities and Exchange Board of India allowed brokers to pay 50 per cent of their liability in cash upfront and the remaining amount in 24 equal instalments.
Sebi set the deadline for brokers paying this as March 2003 but this was extended at least twice. By September 2003, most of the brokers had paid their dues, with the exception of these 80, whose accounts were in dispute.
The BSE had mandated Haribhakti & Co to arrive at a fair computation of turnover fees for past years, after some brokers protested against the BSE's flat rate in 1997, citing lack of records for these previous years.
Haribhakti & Co submitted its report to the BSE last week. According to sources, the report was discussed at the BSE's board meeting on Saturday and has been forwarded to Sebi.