Sebi reduces broker turnover fees, filing charges for draft papers

By: |
Published: April 28, 2020 2:30:27 AM

Sebi in its circular on Monday stated that benefits of reduction in broker turnover fees will automatically be passed to the investors as well. The broker turnover fee will be reduced to 50% of the existing fee structure for the period June 2020 to March 2021.

Sebi in its circular on Monday stated that benefits of reduction in broker turnover fees will automatically be passed to the investors as well.

In order to help market participants, tide over the current situation due to Covid, the Securities and Exchange Board of India (Sebi) announced reduction in broker turnover fees. At the same time, the market regulator also announced reduction in filing fees on offer documents for public issues, rights issues and buyback of shares.

Sebi in its circular on Monday stated that benefits of reduction in broker turnover fees will automatically be passed to the investors as well. The broker turnover fee will be reduced to 50% of the existing fee structure for the period June 2020 to March 2021.

Pranav Haldea, managing director, Prime Database Group, said, “If we look in the last 15-20 days, Sebi has taken slew of measures to ease pain points for issuers and intermediaries considering the Covid-19 crises. Whether it is relaxation on buy-back or today’s announcement in terms of reducing the fees. It’s very heartening to see that regulators understanding the pain which is going on and taking the measures to address the issues.”

Even the filing fees on offer documents for public issue, rights issue and buyback of shares will be reduced to 50% of the existing fee structure. According to the Sebi, this will be effective for documents filed from June 1, 2020, to December 31, 2020. Market participants say that if economic environment improves in the months to come, this move it will help the issuers who wants to come out with either public issues, rights issues or buyback of shares.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sensex, Nifty climb off from day’s high levels; check what’s keeping investors on edge today
2Reliance Industries share price hits new 52-week high as Mukesh Ambani sells another minor stake in Jio
3Stocks in focus: RIL, SBI, Larsen & Toubro, Bharti Airtel, RITES, Power Grid to remain in news