**Executive Summary:**
This circular, effective immediately, amends Chapter XX of the NCS Operational Circular regarding bank account details for fee payments to SEBI. It incorporates the applicability of Goods and Services Tax (GST) at 18% on fees remitted to SEBI, effective from July 18, 2022, and specifies the revised remittance particulars to be provided to SEBI.
**Key Points / Main Content:**
* **Amendment to NCS Operational Circular:**
* Chapter XX of the NCS Operational Circular, concerning bank account details for fee payments, is revised.
* Paragraph b of Chapter XX is replaced with updated remittance particulars.
* **GST Applicability:**
* Fees payable to SEBI are subject to GST at a rate of 18%, effective from July 18, 2022.
* **Revised Remittance Particulars:**
* Remittance particulars must be emailed to odddhs@sebi.gov.in immediately after remittance.
* The email should include the following information:
* Date of remittance
* Fees amount (breakup of fee and GST (18%))
* Total amount paid in INR
* Remitter account number
* Name of the Origin Bank
* Remitter IFSC code
* UTR No./Transaction Reference No.
* Payment product code (NEFT, RTGS, etc.)
* Registered name of remitter
* Registered office address of remitter (including State/UT)
* Email address (from where the money is being remitted, including State/UT)
* GST Registration Number of Remitter
* Purpose for which remittance is made
* **Effective Date:**
* The provisions of this circular are effective immediately.
**Impact Analysis**
* **Issuers of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, or Commercial Paper:**
* *Impact:* Required to pay GST on fees remitted to SEBI and follow the revised procedure for providing remittance particulars.
* *Action Required:* Implement the new remittance procedure, including GST calculations and reporting, for all fee payments to SEBI.
* **Registered Merchant Bankers:**
* *Impact:* Need to be aware of the GST applicability on fees and the revised remittance procedure when making payments to SEBI on behalf of their clients or for their own regulatory requirements.
* *Action Required:* Update payment processes to include GST and ensure compliance with the new remittance particulars format.
* **Recognized Stock Exchanges:**
* *Impact:* Must be aware of the GST implications on fees paid to SEBI and the updated remittance procedures.
* *Action Required:* Ensure compliance with the new remittance procedure when making payments to SEBI.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body for securities markets in India.
Goods and Services Tax (GST): An indirect tax used in India on the supply of goods and services.
Nonconvertible Securities: A type of debt instrument that cannot be converted into equity.
Securitised Debt Instruments: Debt instruments backed by a pool of assets.
Security Receipts: Receipts issued against the assets acquired by asset reconstruction companies.
Commercial Paper: A short-term unsecured promissory note issued by corporations.
SEBI Issue and Listing of NonConvertible Securities Regulations, 2021: Regulations governing the issuance and listing of non-convertible securities.
SEBI Issue and Listing of Securitised Debt Instruments and Security Receipts Regulations, 2008: Regulations governing the issuance and listing of securitized debt instruments and security receipts.
CIRCULAR
SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/0000000152 November 10, 2022
To
Issuers who have listed and/ or propose to list Non-convertible Securities,
Securitised Debt Instruments, Security Receipts or Commercial Paper1;
Registered Merchant Bankers; and
Recognised Stock Exchanges
Madam/ Sir,
Sub: Applicability of GST on fees remitted to SEBI - Revision in Chapter - XX of
Operational Circular for issue and listing of Non-convertible Securities,
Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and
Commercial Paper
1. Chapter XX of the Operational Circular ref. no. SEBI/HO/DDHS/P/CIR/2021/613 dated
August 10, 2021 (updated as on April 13, 2022) (NCS Operational Circular), regarding
‘Bank account details for payment of fees’, inter alia, provides the procedure to be followed
for payment of fees, as applicable, under the SEBI (Issue and Listing of Non-Convertible
Securities) Regulations, 2021 and the SEBI (Issue and Listing of Securitised Debt
Instruments and Security Receipts) Regulations, 2008.
2. SEBI vide circular ref. no. SEBI/HO/GSD/TAD/CIR/P/2022/0097 dated July 18, 2022, w.r.t.
Levy of Goods & Services Tax (GST) on the fees payable to SEBI, informed Market
Infrastructure Institutions (MIIs), intermediaries registered with SEBI and companies which
have listed/ are intending to list their securities on the Stock Exchange(s) and persons who
are dealing in the securities market, that the fees and other charges payable to SEBI shall
become subject to GST at the rate of 18% w.e.f. July 18, 2022.
3. Accordingly, the following amendment is being made to Chapter - XX (Bank account
details for payment of fees) of the NCS Operational Circular:
Paragraph b of the said chapter shall be replaced with the following:
“Provide the remittance particulars by email at od-ddhs@sebi.gov.in, immediately after the
remittance is made, in the following format:
1Unless specified otherwise, all the chapters are applicable to an issue of Non-convertible securities;Sl. No. Particulars Remarks
1 Date of remittance
Fees amount
Amount remitted (break-up of fee and GST thereof) GST@18%
2
(Amount in INR) Total amount
paid
3 Remitter account number
4 Name of the Origin Bank
5 Remitter IFSC code
6 UTR No./ Transaction Reference No.
7 Payment product code (NEFT, RTGS, etc.)
8 Registered name of remitter
9 Registered office address of remitter including State/ UT
10 Email address
Complete address from where the money is being remitted including
11
State/ UT
12 GST Registration Number of Remitter
13 Purpose for which remittance is made
4. The provisions of this circular shall come into force with immediate effect.
5. The Circular is issued in exercise of the powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, read with Regulation 55 (1) of the SEBI
(Issue and Listing of Non-convertible Securities) Regulations, 2021 and Regulation 48 of
the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts)
Regulations, 2008, to protect the interest of investors in securities and to promote the
development of, and to regulate the securities market.
6. This Circular is available at www.sebi.gov.in under the link “LegalCirculars”.
Yours faithfully,
Pradeep Ramakrishnan
General Manager
Department of Debt and Hybrid Securities
+91-22-26449246
pradeepr@sebi.gov.in