India's brokerage stocks slip as markets regulator asks exchanges to levy uniform charge

Motilal Oswal Financial Services

02/07/2024 05:03

BENGALURU, July 2 (Reuters) - Shares of Indian brokers
fell on Tuesday, a day after India's markets regulators asked
market institutions like exchanges to levy uniform charges on
brokers that are not based on volumes.
    Brokerages like Angel One  ANGO.NS , 5Paisa Capital
 PAIS.NS , SMC Global Securities  SMCG.NS  and Motilal Oswal
 MOFS.NS  fell between 6%-2% in early trade. 
    Exchange operator BSE  BSEL.NS  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 revenue stream, which
constitutes between 15%-30% of large brokers' revenues and more
than 50% of discount brokers', is crucial for their
sustainability, Khoday said. 

 (Reporting by Sethuraman NR in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))