In Brief

Mantri Finance Ltd. (formerly operating as an individual stock broker through Srikant Mantri) sought exemption from SEBI registration fees for its Calcutta Stock Exchange membership on the basis that Mantri had already paid fees during his individual membership. The company claimed this benefit under Para 4 of Schedule III to the SEBI Regulations, which provides fee continuity for entities formed by converting individual memberships to corporate form. The Supreme Court upheld SEBI's and the Appellate Tribunal's rejection of this claim, holding that Para 4 applies only where an individual actively converts their own membership into a corporate entity they establish, not where they transfer a membership card to a pre-existing company. Since Mantri was neither a whole-time director nor held the required 40% shareholding, the exemption was unavailable.

The lawyer headnote and full judgment text are available to registered users.