Sebi to consider legal cost recovery from penalties

March 18, 2014 03:22 pm | Updated May 19, 2016 09:35 am IST - New Delhi

With many of its orders getting challenged in tribunal and courts, Sebi wants to recover legal expenses incurred in such litigations from penalties imposed by it on defaulters before crediting the same to the government’s coffers.

The capital markets regulator has incurred litigation expenditure in the range of Rs 4-5 crore in each of the past three financial years, while such expenses could be even higher in the current fiscal ending this month.

Besides, Sebi may also consider charging ‘processing fees’ for various service requests from companies, stock exchanges and market intermediaries, as many of such services are being provided free despite significant costs incurred by the regulator in such matters, sources said.

Fees are proposed to be levied on all service requests, barring investor complaints, in accordance with the processing time, cost and procedures involved. Besides, fees can be hiked for services like informal guidance and consent settlement.

These proposals are likely to be considered by Sebi board later this week and are based on recommendations made by a Committee on Rationalisation of Financial Resources (CRFR), which has also suggested an upward revision in certain existing fees charged by the regulator from companies and market intermediaries, a senior official said.

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