SEBI cuts broker turnover fees, filing charges for draft papers; to implement revised margin framework for cash, derivative segments in June

In a separate circular, SEBI has extended the implementation of revised margin framework for cash and derivatives segments by one month till 1 June. New Delhi Continuing its efforts to help market participants tide over challenges due to COVID-19 pandemic, market regulator SEBI on Monday decided to reduce broker turnover fees and filing charges on offer documents for public offering, rights issue and buyback of shares. The broker turnover fee will be reduced to 50% of the existing fee structure for the period June 2020 to March 2021, the Securities and Exchange Board of India (SEBI) said in a circular. The benefit of such reduction in fees will automatically be passed on to the investors as well, it added. Besides, filling fees on offer documents for public issue, rights issue and buy back of shares will be reduced to 50% of the existing fee structure. This will be effective for documents filed from 1 June 2020, to 31 December 2020. In a separate circular, SEBI has extended the implementation of revised margin framework for cash and derivatives segments by one month till 1 June. The regulator, in February, reviewed the framework to keep pace with the changing market dynamics and to bring more efficiency in the risk management framework. “In view of the challenges arising out of COVID-19 pandemic and various other surveillance measures in place, it has been decided to extend the implementation date... to 1 June 2020,” it added. The framework, which was prepared in consultation with the capital market regulator''s Risk Management Review Committee, was to come into effect from May 1 this year.