MCX shares drop 6% after Sebi’s regulatory fee directive

MCX received a letter from Sebi asking the exchange to pay regulatory fees on option basis notional turnover and not premium turnover. The market also instructed the exchange to pay the differential regulatory fee for past periods with an applicable interest of 15% per annum for every delayed month.

The commodity exchange has disclosed that it will have to pay Rs 1,430 crore of differential regulatory fee for the past period and Rs 340 crore of interest on the same. For FY24 basis this change, MCX will have to pay an additional regulatory fee of Rs 2,660 crore.

Earlier, NSE was calculating the regulatory fees on notional turnover, whereas BSE and MCX were calculating on premium turnover.

Sebi's regulatory charges are calculated on turnover across segments like cash, futures, and options. In cash and futures segments, there is only one turnover, and hence, the calculation is straightforward. In the options segment, there is notional turnover and premium turnover.

The regulator had introduced a regulatory fee on recognised exchanges under the Securities and Exchange Board of India (Regulatory Fee on Stock Exchanges) Regulations 2006. Exchanges are required to pay the fee to the board within 30 days of the conclusion of a financial year under this regulation.

These charges were introduced in 2007 to meet the expenses that the regulator incurs to carry out its duties.

Currently, Sebi charges Re 1 per million turnover on all purchase and sale transactions in securities other than debt securities and charges Rs 0.25 per million turnover on all purchase and sale transactions in debt securities.

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