Sebi directs MIIs to implement uniform charge from October 1
Sebi directs MIIs to implement a new charge structure for fair market access, ensuring transparency and equal treatment for all participants.
The Securities and Exchange Board of India () has instructed (), including , to charge all their members uniformly from October 1 without any discounts based on .Currently, some MIIs use a volume-based slab . Members of these MIIs, such as , depository participants, or clearing members, usually collect these charges from their clients daily. However, the MIIs collect the total charges from the members on a monthly basis and offer paybacks to their members based on the volumes they generate.
In a circular issued on July 1, Sebi said MIIs, being public utility institutions, act as first-level regulators and are entrusted with the responsibility of providing equal, unrestricted, transparent and fair access to all .
Stock brokers are currently making the most of a grey area in the rules on (ETC), a fee charged by the exchanges from investors for trades done on their platforms. Brokers charge a flat fee at the higher end of the slab and retain the benefit of the higher volumes and lower tax. Though there are no rules that state brokers must return the excess amount collected from clients, they may be treading a regulatory twilight zone.
The Sebi circular said that the charge structure of the MII should be uniform and equal for all its members instead of slab-wise, viz., dependent on the volume/activity of members.
"To begin with, the new charge structure designed by MIIs should give due consideration to the existing per unit charges realised by MIIs so that the end clients benefit from the reduction of charges," the circular said.
Source: Stocks-Markets-Economic Times
