SEBI has asked the exchange to pay the differential regulatory fee for the previous period along with 15 percent interest per annum on the outstanding unpaid amount.
New Delhi:
Exchanges will now have to pay higher regulatory fees after market regulator Sebi directed BSE to pay fees based on the “notional value” of its option contracts instead of the premium price. Following this move by the Securities and Exchange Board of India (SEBI), shares of BSE fell 18.64 percent on the NSE on Monday to Rs. had touched a low of 2,612.0.
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Market experts believe that a large difference between the estimated and premium prices will lead to an increase in the payment of regulatory fees to the BSE by SEBI. This discrepancy arises from the calculation method, which involves multiplying the contract size by the underlying price.
The exchange has also been asked to pay differential regulatory fees for earlier periods along with 15 percent interest per annum on the balance amount, the information said. It has been instructed to pay the amount within one month of receiving the letter. Sebi’s letter noted that since the introduction of derivative contracts, BSE has been paying a regulatory fee to the regulator on annual turnover, which takes into account the premium price for the option contract.
BSE said on Sunday that it is currently evaluating the validity of the claims made in SEBI’s letter.