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BSE slumps after SEBI directs recalculation of payable regulatory fees

29-Apr-24 11:46 Hrs IST

The market regulatory had introduced the 'regulatory fee' on recognized stock exchanges vide the Securities and Exchange Board of India (Regulatory Fee on Stock Exchanges) Regulations, 2006.

As per the regulations, the stock exchanges would have to pay a regulatory fee to SEBI within a period of thirty days of conclusion of the relevant financial year.

The rate of regulatory fee was based on the annual turnover of a stock exchange.

The term 'annual turnover shall mean the aggregate value of transactions, which took place on the stock exchange during the relevant financial year,? SEBI said.

It further said that the annual turnover for option contracts is to be computed and was always deemed to have been computed on the basis of the notional value of the option contracts for the purpose of payment of regulatory fee to the Board.

In the context of the regulator/ fees paid by BSE to SEBI for the past periods, the market regulator noted that the regulatory fee paid for the FY 2006-07 was for a quarter rather than for the full financial year.

Since introduction of derivative contracts, BSE has been paying the regulatory fee on annual turnover to SEBI considering premium vaitte for option contracts, instead of the notional value.

In view of the same, BSE has been advised to pay the regulatory fee based on annual turnover to SEBI considering ?notional value? in case of option contracts.

BSE has been further advised to pay the differential regulatory fee for the past periods along with applicable interest, within a period of one month from the date of receipt of this letter.

Offering an update with respect to the same, BSE said that it is currently evaluating the validity, or otherwise, of the claim as per SEBI communication.

In case, if it is ascertained that the said amount is payable, then the total differential SEBI regulatory fees for the past periods i.e. from FY 2006-07 to FY 2022-23, would be approximately Rs 68.64 crore plus GST, which includes interest of Rs 30.34 crore.

The due date for payment of SEBI regulatory fee for FY 2023-24 is 30 April 2024, amount payable as per premium (turnover) is approximately Rs 1.66 crore plus GST, which has been paid by the company. The differential SEBI regulatory fees for the year, if liable, could be around Rs 96.30 crore plus GST.

BSE (formerly Bombay Stock Exchange) is Asia's first & the world's fastest Stock Exchange with a speed of 6 microseconds. It provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

The exchange platform?s consolidated net profit fell 10.22% to 108.19 crore in Q3 FY24 as against Rs 120.50 crore posted in Q2 FY24. However, revenue from operations increased 18.13% quarter on quarter (QoQ) to Rs 371.53 crore in the quarter ended 31 December 2023.