New Delhi: The Delhi High Court has restrained Securities and Exchange Board of India (SEBI) from recovering fee from registered investors on their personal transactions in stock market following a petition challenging the validity of a notification by the market regulator in this regard.

"No payment shall abide by respondent (SEBI)," a Bench comprising Chief Justice S B Sinha and Justice A K Sikri in its interim order said, while admitting for hearing a public interest litigation (PIL) challenging the March 28 notification by SEBI imposing fee on individual investors registered with the stock exchange.

Fixing the matter for final disposal on July 23, the court issued notices to the Ministry of Finance and SEBI directing them to file their replies by next date.

The PIL filed by Yogesh Jain through his counsel M L Sharma challenged the SEBI notification on the ground that as per February 22 ruling of the High Court, the fee could be imposed only on brokers not on any individual investor even if he was registered with stock exchange.

"Personal transactions and transactions in the account of registered investors never come within the (definition) of brokers' account. Such transaction by any registered investor is always in his personal capacity and cannot be counted for broker turnover," the PIL quoting the High Court ruling said.

Seeking quashing of the notification on the ground that it was contrary to the provision of SEBI Act, 1992, as well as the provisions of the Constitution, Sharma said members registered with the stock exchange were not prohibited from making personal investment in the share market.

PTI