Brokerage stocks slip as Sebi asks exchanges to levy uniform charge
Indian brokers saw a decline in shares following regulators' move for uniform charges, affecting firms like Angel One. Exchanges charging standard rates, with high-turnover brokers like FYERS gaining from lower fees.
Shares of Indian fell on Tuesday, a day after India's markets regulators asked market institutions like to levy uniform charges on brokers that are not based on .Brokerages like , , fell between 6%-2% in early trade.
Exchange operator BSE was down 1%.
Exchanges often charge a lower fee to brokers if they generate high volumes, contributing to a surge in trading across segments like derivatives, which the regulator wants to curb.
While retail customers are charged the standard slab rate, brokers were benefiting from a lower fee due to high turnover, Tejas Khoday, cofounder and CEO of FYERS, a discount broking firm said.
The exchange transaction charge stream, which constitutes between 15%-30% of large brokers' revenues and more than 50% of discount brokers', is crucial for their sustainability, Khoday said.
Source: Stocks-Markets-Economic Times
