Introduction
A letter issued by SEBI to BSE has caused ripples. The letter
was disclosed by BSE on 26 April 2024. In it, SEBI posed a demand
for shortfall in regulatory fees to be paid to by BSE to SEBI. The
fee is charged to recognised stock exchange under the SEBI
(Regulatory Fee on Stock Exchanges) Regulations 2006, read with
Regulation 11 of the Securities Contracts (Regulation) (Stock
Exchanges and Clearing Corporations) Regulations, 2018 ("SECC
Regulations"), at the rates defined under Part-A of Schedule
III thereto.
The said regulatory fee is paid on a yearly basis, calculated on
the basis of the 'annual turnover' of an exchange. The
method of calculation of this fee has since become a subject of
much debate and conjecture. While SEBI's letter attempts to
bring about some clarity, it remains to be seen if it brings with
it any quietus.
