Tag: SEBI directives

Bad news has come for the stock market investors. Some recent changes in the rules by the market regulator SEBI can make investing in the stock market expensive. Major brokerage firm Zerodha has clearly indicated this. Nitin Kamath told in a blog post Zirodha's co-founder and CEO Nitin Kamath said in a blog post on Tuesday - Being a business, we may have to charge brokerage fee on equity delivery investment, which is currently free. Along with this, he also wrote that his company can also increase the brokerage charge on the derivative segment i.e. futures and options trade. First company with zero brokerage Zirodha used to charge in case of equity trade delivery, but later the company removed the charge and made the delivery of equity trade free. Zerodha became the first discount brokerage company to do so by introducing zero brokerage in 2015. This policy has contributed the most in making Zerodha the largest discount brokerage firm. Now Zerodha says that due to the recent rules of SEBI, it may have to charge again on equity trade delivery. What does SEBI's circular say Actually, market regulator SEBI issued a circular on July 1 regarding various charges related to the stock market. SEBI said in the circular that there should be uniformity in the charges levied by market institutions and the charges taken from customers in return. SEBI also said that the charge structure should not be slab based, but should be the same for all brokers, irrespective of the trading volume. This is how Zerodha earns money Kamath explained the impact of SEBI's circular and said - the difference between what brokers charge customers and what exchanges charge brokers at the end of the month is like a rebate, which is shown as revenue for every broker. In the case of Zerodha, 10 percent of the revenue comes through this rebate, while 90 percent of its revenue comes from F&O trade. Also read: Stock market wrote new history, Sensex crossed 80 thousand points for the first time Source link

Zerodha Fee: Shock to stock market investors, now there will be no exemption from brokerage charges on Zerodha