OPG SECURITIES PRIVATE LTD. versus S.E.B.I. & ANR.

OPG SECURITIES PRIVATE LTD. versus S.E.B.I. & ANR.

After Schedule IIIA became applicable, registration fee for any future period since 1.10.2006 could not be levied or demanded on the basis of Schedule III and must be calculated and paid monthly as per Schedule IIIA. SEBI’s demand based on both previous year and ongoing turnover until Schedule IIIA’s implementation was illegal and contrary to the Regulations.

Parties
Appellant: OPG Securities Private Ltd.; Respondents: Securities and Exchange Board of India (SEBI) & Anr.
Jurisdiction
India
Judgment Date
04 December 2015
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal allowed; order of SAT set aside; SEBI’s demand quashed
Legal Topics
Registration Fee of Stock Brokers, Interpretation of Regulations, Fee Computation
Securities Law Registration Fee of Stock Brokers Interpretation of Regulations Fee Computation

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Parties

OPG Securities Private Ltd.

Appellant

Securities and Exchange Board of India (SEBI) & Anr.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether SEBI can demand registration fee both on the basis of turnover of previous year and the entire turnover earned till implementation of Schedule IIIA
  2. 2 Whether the annual turnover is the subject matter or only a measure for levy of registration fee

Ratio Decidendi

After Schedule IIIA became applicable, registration fee for any future period since 1.10.2006 could not be levied or demanded on the basis of Schedule III and must be calculated and paid monthly as per Schedule IIIA. SEBI’s demand based on both previous year and ongoing turnover until Schedule IIIA’s implementation was illegal and contrary to the Regulations.

Court Disposition

Appeal allowed; order of SAT set aside; SEBI’s demand quashed

Orders

  • Whatever amount the appellant had paid towards the quashed demand shall be refunded to it along with interest at the rate of 10% per annum from the date of deposit till refund
  • Refund must be effected without delay and within two months