Reduction by SEBI in broker turnover fees and filing fees on offer documents for Public issue, Rights issue and Buyback of shares

In view of the COVID-19 pandemic, the Securities and Exchange Board of India (SEBI), vide its press release no. 24/2020 dated April 27, 2020, (Press Release), has decided to reduce broker turnover fees and filing fees on offer documents for Public issue, Rights issue and Buyback of shares.

By way of this Press Release, SEBI has decided that the broker turnover fee will be reduced to 50% of the existing fee structure for the period June 2020 to March 2021. The benefit of this reduction in fees will automatically be passed on to the investors as well. Further, filing fees on offer documents for Public issue, Rights issue and Buyback of shares will be reduced to 50% of the existing fee structure. This will be effective for documents filed from June 1, 2020 to December 31, 2020.

While the above development is based on a press release issued by SEBI, we anticipate that in due course of time, a detailed circular may be issued by SEBI for amending the relevant provisions of the applicable regulations including but not limited to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018, and the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992.

Please refer to the Press Release dated April 27, 2020 (no.: 24/2020) for more details.

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