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:
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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’.
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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):
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Market Infrastructure Institutions;
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Intermediaries registered with SEBI;
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Companies which have listed/ are intending to list their securities on the Stock Exchange;
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Persons who are dealing in the securities market.
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Accordingly, the following amendments are made in the format in paragraph (b) of Chapter XX (Bank account details for payment of fees):
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Heading ‘Amount Remitted’ now specifies the break- up of fee and GST.
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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
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*Kriti Kumar, Editorial Assistant has reported this brief.