Explained: Why Sebi handed over Rs 165 crore bill to BSE and how it impacts investors
BSE shares was brought to a screeching halt on Monday after market regulator Sebi asked the bourse to pay regulatory fee based on notional turnover and not premium turnover. Preliminary calculations done by the stock exchange shows that it could lead to an additional payout of Rs 165 crore plus GST.
Based on the annual turnover considering notional value of option contracts, the total differential Sebi regulatory fees from FY 2006-07 to FY 2022-23, would be approximately Rs 68.64 crore plus GST, which includes interest of Rs 30.34 crore. For FY24, the differential Sebi regulatory fees for the year could be around Rs 96.30 crore plus GST.
BSE said it is currently evaluating the validity of the claim by Sebi but analysts say the exchange is likely to accept it.
NSE has already been calculating the regulatory fees on notional turnover whereas BSE and MCX were calculating on premium turnover. Sebi has, therefore, written to both the exchanges to follow the notional turnover calculation.
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What is the difference between notional turnover and premium turnover?
The outgo for BSE will be high in future as well because notional turnover is always higher than premium turnover.
Notional turnover is calculated by multiplying strike price of each contract traded with the number of underlying assets in each contract while premium turnover is the sum of premiums paid on all contracts.
For example, for 10 Sensex 75,000 Call options at Rs
