SEBI Halves Broker Turnover Fee, Filing Fees For Offer Documents
Mumbai: In a bid to provide further relief to market participants amid the coronavirus crisis, securities market regulator SEBI has reduced broker turnover fees and filing fees on offer documents for public issue, rights issue and buyback of shares by 50 per cent.
“In its continuing efforts to help market participants to tide over challenges due to COVID-19, the Securities and Exchange Board of India (SEBI) has decided to reduce broker turnover fees and filing fees on offer documents for Public issue, Rights issue and Buyback of shares,” said a statement by the regulator.
The broker turnover fee will be reduced to 50 per cent of the existing fee structure for the period of June 2020 to March 2021, it said, adding that the benefit of the reduction in fees will automatically be passed on to the investors as well.
Further, the 50 per cent cut in the filing fees on offer documents for public issue, rights issue and buyback of shares will be effective for documents filed from June 1, 2020, to December 31, 2020.
The market regulator has announced a slew of regulatory easing measures in the past couple of months for market participants and companies amid the coronavirus crisis.
Meanwhile, Indian equity market rose on Monday following the announcement made by the Reserve Bank of India (RBI) to open a special liquidity facility (SLF-MF) worth Rs 50,000 crore for mutual funds.
Post the announcement, banking and finance stocks surged. The S&P BSE Banking index ended 2.88 per cent higher and the BSE Finance index rose by 2.09 per cent.
Investors were nervous after Franklin Templeton Mutual Fund announced the closure of six of its credit funds due to liquidity issues.
Rahul Sharma, Research Head at Equity99, said: “Timely liquidity support by the Reserve Bank of India (RBI) lifted the market sentiments today. Gains in banking and financial stocks led the market rally, in an otherwise volatile trading session.”
Further, a positive trend in the global markets including Asian and European indices also supported the domestic markets.
The BSE Sensex closed at 31,743.08, higher by 415.86 or 1.33 per cent from the previous close of 31,327.22.
It had opened at 31,659.04 and has so far touched an intra-day high of 32,103.70 and a low of 31,651.58.
The Nifty50 on the National Stock Exchange closed at 9,282.30, higher by 127.90 points or 1.40 per cent from the previous close.
Deepak Jasani, Head of Retail Research at HDFC Securities, said: “With the Nifty rallying higher, the short term trend continues to remain up. Further upsides are likely once the immediate resistance of 9,377 is taken out. Crucial supports to watch for any weakness are at 9,259-9,141.”
Vinod Nair, Head of Research at Geojit Financial Services, said that the news regarding the RBI liquidity facility for mutual funds and stimulus packages from central banks around the world provided some positivity to the markets.
“Investors are looking towards earnings results coming out later and during the week for more clarity on the specific sectors. Credit risk concerns remain and investors are advised to remain cautious,” he said.