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Sebi gives SEs freedom to decide on listing fee collection
Our Markets Bureau
Mumbai, March 4: The Securities and Exchange Board of India (Sebi) has withdrawn its earlier stipulation asking the stock exchanges to collect a listing fee, due for the next three-years up-front, and allowed stockexchanges (SE's) to decide about the manner in which they would collect the same. To facilitate investors to hold the shares owned by them in physical form, Sebi has also decided to ask issuer companies to issue a single share certificate to any investor who wishes to obtain the physical share certificates, in case of initial public offerings (IPOs). The decision was taken "as the exchanges have expressed difficulties in collecting the three year listing fee up-front," at the meeting of the regulator with the exchanges on January 17, Sebi said in a notification.Sebi had in a circular issued on April 29, 1998, asked the exchanges to collect the fee for the next three years up-front at the time of initial listing and subsequently also continue with the practice of collecting the fee for three-years at a time, and keep the same in an escrow account till the amount is adjusted, towards the fee periodically. With respect to issuing of physical shares, the regulator however, has stuck to its earlier decision, that the investors have to de-materialise the scrips before they are sold, to ensure that under its mandate all the shares allotted under the new IPOs will be traded only in demat form. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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