The Securities and Exchange Board of India, (SEBI) on July 01, 2024, issued a notification regarding the Charges levied by Market Infrastructure Institutions – True to Label.
It has been decided that the MIIs would comply with the following additional principles while designing the processes for charges levied on their members which are to be recovered from the end clients:
•The MII charges which are to be recovered from the end client should be True to Label i.e. if a certain MII charge is levied on the end client by members (i.e. stock brokers, depository participants, clearing members), it should be ensured by MIIs that the same amount is received by them.
•The charge structure of the MII should be uniform and equal for all its members instead of slab-wise viz. dependent on the volume/activity of members.
•To begin with, the new charge structure designed by MIIs should give due consideration to the existing per-unit charges realized by MIIs so that the end clients benefit from the reduction of charges.
MIIs are directed to redesign the existing charge structure and associated processes to comply with the aforesaid principles and also take necessary steps to put in place requisite infrastructure and systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations, bring the provisions of this circular to the notice of their members and also disseminate the same on their website and communicate to SEBI, the status of implementation of the provisions of this circular.
The circular would be effective from October 01, 2024.
[Notification No. SEBI/HO/MRD/TPD-1/P/CIR/2024/92]
