The Pay FIRM told customers in a communication that it would increase the minimum equity brokerage charge for equity trades from June 21 to 2 to ₹ 2. The move is expected to increase the trade costs of small transactions. The IPO-bound firm with approximately 13 million active customers will currently charge a brokerage fee in the range of ₹ 5 to ₹ 20 per trade compared to $ 2 to 20.
AgencyAt the end of the Securities and Exchange Board of India’s Modena, announced in July last year, the Securities and Exchange Board’s ‘True-to-Label’ Norman, other big brokers, like Angel One, also charged $ 0 to 20. New Rules allow brokers to charge a transaction charge on customers that they will pay market infrastructure organizations (MIIS) – stock exchange, clearing corporations and deposits.
This has removed the hidden markup, which has hit the brokers’ profitability. “After the regulatory changes presented last year, we have seen a significant decline in the derivative volume in the Indian markets, which has significantly impacted the broker’s income,” said Ashish Nanda, president and digital business head of Kotak Securities. “Sebi’s’ True to Label ‘circular removes the exemption which had previously contributed 10 to 50% of the brokers’ revenue.”
According to the NSE, equity derivatives turnover on the NSE has dropped 27% to Rs 39.5 lakh crore. Nanda said that due to this pressure, many companies have resorted to a price hike as a way to offset the financial hit. After the regulatory tighten, Xerod’s founder Nithin Kamath said on the X: “With the new circular, we, in all possibilities, have to leave zero brokerage structures and increase brokerage for/or F&O trades. Brokers have to tweak their prices in the whole industry.”
Grove also updated interest rates for MTF (margin trading facility) – a system that allows investors to borrow to buy shares that can afford 14.95% annually. Currently, Broking Pay FIRM charges 15.75% annually because MTF interest for funds is Rs. Less than 25 lakhs and Rs 25 lakh is 9.75%.
This decision will make it more expensive for high-volume users of the MTF facility. Groove said that the depository participation (DP) charge for consumers will also increase from Rs 18.5 per day to Rs 20 per day “. Earlier, you were once charged DP charges per stock (ISIN),” said Client Communication Pay FIRM.
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