Regulatory Alerts2015-07-13
Revision of Application Fees for Entities Licensed/Registered by the Securities and Exchange Commission of Sri Lanka
The Securities and Exchange Commission of Sri Lanka revised application fees for licensed and registered entities effective July 1, 2015, in response to statutory changes in stamp duty and Value Added Tax rates. The new fee structure incorporates a reduced VAT rate of 11 percent and a stamp duty cap of Rs. 2,000 or 10 percent of the license fee, whichever is lower. These adjustments apply to all new registrations, renewals, and specific categories such as stock brokers, investment managers, and clearing houses as detailed in the accompanying schedule.
SEC SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ශ්රී ලංකා සුරැකුම්පත් හා විනිමය කොමිෂන් සභාව இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு
By Hand/ Registered Post/ Fax Ref: SEC/DG/2015/07/51
10th July 2015
TO: ALL ENTITIES LICENCED /REGISTERED BY THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA
RE: REVISION OF APPLICATION FEES FOR ENTITIES LICENCED/REGISTERED BY THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA
The Securities and Exchange Commission of Sri Lanka (SEC) writes to inform you that pursuant to Circular No: SEC/Stamp Duty/2015/03 dated 21st April 2015 issued by the Department of Inland Revenue in accordance with Gazette No. 1789/9 dated 17th December 2012 and Stamp Duty (Special Provisions) Act No.12 of 2006, the stamp duty applicable to licenced entities of SEC would amount to Rs. 2000/- or 10% of the licence/registration fee whichever is less.
Further the Value Added Tax (VAT) applicable to entities licenced/registered by the SEC has been reduced from 12% to 11% following the amendments to the law consequent to the Budget 2015.
Please note that these fees will be applicable to all entities which are to be licenced /registered or such licences or registrations that are to be renewed by SEC with effect from 01st July 2015.
| # | Category | Frequency | Current Fee (LKR) | VAT at 11% (LKR) | Stamp Duty (LKR) | Total Payable (LKR) |
|---|---|---|---|---|---|---|
| 1) | Stock Exchange | Every 5 years | 250,000/- | 27,500/- | 2,000/- | 279,500/- |
| 2) | Stock Broker | Annually | 40,000/- | 4,400/- | 2,000/- | 46,400/- |
| 3) | Stock Dealer | Annually | 40,000/- | 4,400/- | 2,000/- | 46,400/- |
| 4) | Stock Broker and Stock Dealer | Annually | 75,000/- | 8,250/- | 4,000/- | 87,250/- |
| 5) | Investment Manager | Annually | 15,000/- | 1,650/- | 1,500/- | 18,150/- |
| 6) | Margin Provider | Annually | 25,000/- | 2,750/- | 2,000/- | 29,750/- |
| 7) | Credit Rating Agency | Annually | 40,000/- | 4,400/- | 2,000/- | 46,400/- |
| 8) | Underwriter | Annually | 25,000/- | 2,750/- | 2,000/- | 29,750/- |
| 9) | Clearing House | Annually | 25,000/- | 2,750/- | 2,000/- | 29,750/- |
| 10) | Managing Companies of Unit Trusts | Per Fund Registration Only | 100,000/- | 11,000/- | - | 111,000/- |
Yours faithfully,
Vajira Wijegunawardane DIRECTOR GENERAL
IJ/s
28 වන මහල, ලංකා බැංකු මාවත කොළඹ කොටුව, කොළඹ 01. 28 மாடி, இலங்கை வங்கி மாவத்தை கொழும்பு கோட்டை, கொழும்பு 01. Level 28 & 29, East Tower World Trade Center Echelon Square, Colombo 01, Sri Lanka.
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