Securities (Brokerage Fees for Debentures) (Amendment) Rules 2021

Veemul MPro3/Govt Notices/2021/Fees for Debentures)- 03.04.2021 - 2nd Proof Government Notice No. 75 of 2021 THE SECURITIES ACT FSC Rules made by the Financial Services Commission under section 93 of the Financial Services Act and
section 155 of the Securities Act

1. These Rules may be cited as the Securities (Brokerage Fees for
   Debentures) (Amendment) Rules 2021.
2. In these Rules, “principal rules” means the Securities (Brokerage
   Fees for Debentures) Rules 2013.
3. The principal rules are amended –
   (a) by deleting rule 3 and replacing same by –
4. Brokerage Fee
   (1) Any person who enters a transaction in respect of debentures on the securities exchange shall pay to the investment dealer a brokerage fee. (2) Every investment dealer licensed under the Act may, after the completion of each transaction on a securities exchange, recover from its client the amount payable as brokerage fee. (3) The brokerage fee claimed by an investment dealer from its client must be a fair amount with regard to the value of the consideration of the transaction, after taking into consideration factors such as costs, fees payable to the securities exchange, the clearing and settlement facility and the Commission. 1380 Government Notices 2021

Government Notices 2021 1381 Veemul MPro3/Govt Notices/2021/Fees for Debentures)- 03.04.2021 - 2nd Proof Veemul MPro3/Govt Notices/2021/Fees for Debentures)- 03.04.2021 - 2nd Proof Veemul MPro3/Govt Notices/2021/XXXXX - xx.xx.2021 (4) Every investment dealer must publish its maximum brokerage fee prominently on its website disclosing the information prescribed in the schedule to these Rules. (5) The Commission reserves the right to require the maximum brokerage fee to be revised downwards if, in the opinion of the Commission, it is abusive. (6) The amount payable to the Commission shall be 0.0025% of the value of the consideration of the relevant transaction for transaction value on debentures which exceeds or equals MUR 75,000 and MUR2 for transaction value on debentures which does not exceed MUR 75,000 (7) The brokerage fee claimed by an investment dealer from its client shall be disclosed to its client together with the amounts payable to the investment dealer, the securities exchange, the clearing and settlement facility and the Commission in respect of the relevant transaction. (b) in Part I of the SCHEDULE – (i) by deleting the word “to” after the word “equal”; (ii) by deleting, from the table, the following columns – (A) Investment Dealer; (B) Securities exchange;

1382 Government Notices 2021 Veemul MPro3/Govt Notices/2021/Fees for Debentures)- 03.04.2021 - 2nd Proof Veemul MPro3/Govt Notices/2021/XXXXX - xx.xx.2021 (C) Clearing and Settlement Facility; and (D) Total brokerage fee claimed for apportionment. (c) in Part II of the SCHEDULE, by deleting from the table, the following columns – (i) Investment Dealer; (ii) Securities exchange; (iii) Clearing and Settlement Facility; and (iv) Total brokerage fee claimed for apportionment.
4. These Rules shall come into operation on 3 April 2021.
Made by the Financial Services Commission on 3 April 2021.