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Supreme Court of India 2022-10-13 allowed

SECURITIES AND EXCHANGE BOARD OF INDIA vs NATIONAL STOCK EXCHANGE MEMBERS ASSOCIATION AND ANR

Bench: 2 — Ajay Rastogi, B.V. Nagarathna

In Brief

This Supreme Court case concerned whether a stock broker operating across multiple stock exchanges needs a separate SEBI certificate of registration for each exchange or a single certificate suffices. The Court held that separate certificates are required for each stock exchange where a broker holds membership. The Court rejected the High Court's emphasis on the singular word 'a certificate' in the statute, explaining that in legal interpretation this can include the plural. Moreover, the regulatory scheme of Rules and Regulations mandates separate registration per stock exchange. Consequently, a stock broker must pay ad valorem fees for each certificate obtained, with each fee cycle running independently from the initial registration date for that specific stock exchange. The appeal was allowed and the Division Bench judgment set aside.",

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