SEBI penalises BSE for inadequate fee payment on options contracts

Capital markets regulator Securities and Exchange Board of India (SEBI) has pointed out discrepancies in fees paid by BSE to the regulator on derivatives contracts.

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Since the introduction of derivatives contracts in June 2000, BSE has been paying the regulatory fee on the annual turnover – taking into account the premium value for options contracts. Per norms, the fees need to be paid on the notional value of options contracts. In addition, the fees paid to the regulator for FY07 was for a quarter instead of a full year.

The exchange will have to now pay up the differential amount in fees along with 15 per cent interest for every year. The computation of the additional amount has to be certified by a chartered account and paid within a month from the date receipt of SEBI’s letter.