The Hindu : Business : Further hearing on brokers' appeal posted for October 18

Online edition of India's National Newspaper
Wednesday, Oct 13, 2004

Business

Business

Further hearing on brokers' appeal posted for October 18

By Our Special Correspondent

MUMBAI, OCT. 12. The Securities Appellate Tribunal (SAT) today granted an interim relief to stock brokers on payment of fee based on provisional claim unilaterally raised by the Securities and Exchange Board of India (SEBI).

The appeals challenging the SEBI's decision on the fee liability payable by the stock brokers are now posted for further hearing on October 18, "as important questions of law arise for consideration".

The Tribunal, presided over by Justice Kumar Rajaratnam, also rejected the plea of the SEBI directing brokers to provide bank guarantee.

Since the availability of the scheme giving the waiver of 80 per cent of the interest is available for the specific period of October 15 to November 15 as a one-time measure, the brokers were in a dilemma as to accept the provisional fee figures drawn up by the SEBI to be accepted or not. Brokers expressed the view that the amount claimed by the SEBI was on a higher side, as arrived at, ignoring several factors including continuity aspect. It is in this context several brokers approached the SAT seeking interim order.

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