India Inc will have to pay higher fees to Sebi from FY '15

Market intermediaries and corporates will soon have to pay higher fees to Sebi as its board on Thursday approved proposals for fee hike to bolster financial resources of the capital markets regulator.

The Sebi board also approved the budget estimates for the next financial year 2014-15, beginning April 1, while investor protection, capacity building, enhanced market surveillance and investigation functions have been identified as key areas.

After a board meeting held here this afternoon, Sebi said that the fee revision proposals are based on recommendation of Committee on Rationalization of Financial Resources.CRFR has suggested a hike in fees charged by Sebi to various market intermediaries, as also by listed and to-be- listed companies.

It had also recommended imposition of fees for various services offered by Sebi, except for handling investor complaints. Besides, fees charged for consent settlement and informal guidance were proposed to be hiked.

Sebi said its board has approved the upward revision of fees while ensuring minimal impact on investors.

“The same will be notified through appropriate circulars to be issued in due course,” it added.According to sources, the fee hike has been proposed by CRFR for brokers, stock exchanges and mutual funds, among others, as also the charges for various offer documents and for takeovers.

Sebi further said that its budget for the financial year 2014-15 has been prepared keeping in view the need to place greater emphasis to achieve the mandated statutory objectives.The board also identified four core areas for Sebi’s activities in 2014-15.

These include strengthening the investor awareness and education measures, enlarging reach amongst investors through regional and local offices, enhanced focus on capacity building, and raising standards of supervision and enforcement functions in market place such as strengthening market surveillance and investigation functions.

The fee hike is aimed at helping Sebi generate resources for its regulatory and investor-centric activities, as a slump in capital markets has adversely impacted its finances.

The proposed revision includes pushing back the fees to the level seen before a reduction was announced in 2009 for some intermediaries.

The CRFR submitted its report to Sebi earlier this month after detailed discussions and a "thorough study" of various parameters.