On 10-11-2022, the Securities and Exchange Board of India (‘SEBI’) has issued circular revising the Chapter XX of Operational Circular for issue and listing of Non-Convertible Securities (‘NCS’), Securitized Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper -Applicability of GST on fees remitted to SEBI. The provisions of this circular will come into force with immediate effect.

Key Points:

  1. Chapter XX was inserted in the operational circular through SEBI circular dated 13-04-2022, which provides the procedure for payment of fees under the heading ‘Bank account details for payment of fees’.

  2. SEBI vide circular dated 18-07-2022, notified that the following will be subject to GST at the rate of 18% (w.e.f. 18-07-2022):

    • Market Infrastructure Institutions;

    • Intermediaries registered with SEBI;

    • Companies which have listed/ are intending to list their securities on the Stock Exchange;

    • Persons who are dealing in the securities market.

  3. Accordingly, the following amendments are made in the format in paragraph (b) of Chapter XX (Bank account details for payment of fees):

    • Heading ‘Amount Remitted’ now specifies the break- up of fee and GST.

    • New headings introduced:

      i) Remitter’s account number

      ii) Remitter IFSC code

      iii) Payment product code (NEFT, RTGS, etc.)

      iv) Registered name of remitter

      v) Registered office address of remitter including State/UT

      vi) Email address

      vii) Complete address from where the money is being remitted including State/UT

      viii) GST Registration Number of the Remitter

*Kriti Kumar, Editorial Assistant has reported this brief.

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