EOPs who charge transaction fee from investors to maintain capital deposit of Rs.10 lakh: SEBI

SEBI has clarified that Execution Only Platform 2 (EOP 2) will have to maintain base minimum capital deposit of Rs.10 lakh with stock exchanges like BSE and NSE as deposit amount.

Further, SEBI has directed stock exchanges to put in place necessary system to implement these norms and issue a circular to market participants.

SEBI has introduced two set of norms of EOPs – category 1 EOPs can become agent of AMCs and charge transaction fee from them by obtaining license from AMFI and category 2 EOPs can become representative of investors and charge them directly by taking stock broking license.

SEBI has defined EOP as any digital or online platform, which facilitates transactions such as subscription, redemption and switch transactions in direct plans of the schemes of mutual funds.

For EOP 1 or EOPs who charge transaction fee from AMCs, the minimum net worth is Rs.1 crore.