SEBI's income likely to drop due to slowdown in market
Tags:
Market regulator SEBI expects its total income for 2012-13 fiscal at Rs 348 crore, lower than Rs 363.47 crore in the last year due to slowdown in market activities.
The total income is estimated to be lower in the year 2012-13 mainly because of decrease in income from fees receivable from the intermediaries, according to the budget estimates of the market regulator.
"On account of fall in market volumes, coupled with slowdown in the primary market activity, fees from the stock-brokers (both equity and derivative segment) and fees receivable for filing the offer documents are estimated to show a decline," SEBI said.
Income in form of fee from intermediaries is expected to drop to Rs 167.11 crore in 2012-13, against Rs 179.24 crore in the previous fiscal.
Besides, an increase in capital expenditure is also estimated in 2012-13, which may result in net deficit of Rs 275.51 crore during the year, the document said.
SEBI's total revenue expenditure during 2012-13 is estimated at Rs 186.45 crore, an increase of 14.68 per cent over the revised revenue expenditure of the previous year.
The regulator has also planned an expenditure of about Rs 281 crore on acquisition of office and residential premises this year.
"Some major capital expenditure budgeted for the year 2011-12 did not materialise. These have been carried forward in BE (Budget Estimate) for 2012-13 with revised budget estimates," the regulator said.
To open 5 new local offices
With an aim to take its services at the door-step of investors, the Securities and Exchange Board of India (SEBI) has decided to open five more local offices, including at Chandigarh and Jaipur, in the current fiscal.
As part of its decentralisation of work to regional offices, the Mumbai-headquartered SEBI is opening new local offices in different regions of the country.
The five new offices will be opened at Chandigarh, Jaipur, Indore, Patna or Bhuwneshwar and Banglore or Kochi in 2012-13, according to an official document.
These offices have been 'identified inter-alia' on the basis of number of demat accounts, registered folios, exchange trading terminals and rate of growth in beneficiary accounts. The idea behind new offices is to deepen of securities market.
The market regulator had decided to open a new Western Regional Office-I at Mumbai and three local offices at Hyderabad, Guwahati and Lucknow in 2011-12. It has identified office buildings and "further work is in progress", it said.
The SEBI Board in March, 2011, had asked the regulator to explore scope of strengthening its regional offices.
Following the Board decision, a series of internal discussions took place to explore the possibility of decentralisation of work to regional offices and opening of offices at new places.
During the discussions, it emerged that the investor should get the services of SEBI at his door step to promote a balanced, pan-Indian securities market.
As per the regulator, physical proximity of SEBI office to investors and intermediaries would promote deepening and broadening of the securities market.
Post new comment