SEBI PARES TURNOVER FEES FOR BROKERS

The Securities and Exchange Board of India has reduced the turnover fees for brokerages with effect from October 1, 2006. Under the new fees structure, broking houses are required to pay Rs. 20 per Crore worth transactions (0.0002 %) on all transactions in the securities market, down from earlier Rs. 1000 per Rs. 1 Crore worth transactions (0.01 %). Similarly, for debt transactions, the rate has been brought down to Rs. 5 per Rs. 1 Crore transactions (0.00005 %) from the existing Rs. 1000 per Rs. one Crore transactions. In the futures & options segment, the fee has been doubled to Rs. 20 per Crore (0.0002 %) from the existing Rs. 10 per Crore. The revision has been broadly along the lines suggested by an expert committee headed by Mr. Anjaria. The revision in the fee structure was brought about by a notification, amending the relevant Sebi regulations.