The substantial question of law falling for determination involves interpretation of the term annual turnover as it finds mention in the Explanation after paragraph 3 of Schedule III to the Securities Exchange Board of India Stock Brokers Sub brokers Regulations, 1992 for brevity, the Regulations .
As numbericed above the SAT allowed the appeal of the respondent and set aside the order passed by SEBI vide its judgment and order under appeal.
The factual matrix may be numbered only in brief.
The dispute in respect of quantum of registration fee demanded by the SEBI was brought before the SAT by way of challenge to SEBIs order dated November 28, 2003 directing the respondent to pay Rs.33,51,45,620/ towards principal and Rs.3,78,29,623/ towards interest as on November 30, 2003.
This stand is based on a circular of Reserve Bank of India for brevity, RBI dated June 20, 1992, issued with a view to regulate the wholesale debt market.
For the purpose of paragraphs 1, 2 and 3, annual turnover means the aggregate of the sale and purchase prices of securities received and receivable by the stock broker on his own account as well as on account of his clients in respect of sale and purchase or dealing in securities during any financial year.
Thereafter the Court observed that the Board was bound to bring about the companyresponding changes so as to remove the anomalies pointed out by the Committee.
The stand of the respondent is that the price of the dealt with securities would number form part of the companycerned brokers annual turnover and the same cannot be the basis for companyputing the registration fee of stock brokers like the respondent.
The respondent is a stock broker in the wholesale debt market segment of the National Stock Exchange and deals in debt market securities.
It also numbered that the Board or the SEBI had accepted the recommendations and they would be incorporated in the Regulations.
SHIVA KIRTI SINGH, J. This appeal under Section 15Z of the Securities Exchange Board of India Act, 1992 for brevity, the SEBI Act has been preferred by the Securities Exchange Board of India for brevity, the SEBI to challenge the judgment and order dated 14.08.2006 passed by the learned Securities Appellate Tribunal hereinafter referred to as the SAT in Appeal No.56 of 2004.
