India's brokerage stocks slip as markets regulator asks exchanges to levy uniform charge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 02 2024
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Source: reuters
- Indian Brokers' Shares Fall: Indian brokers' shares dropped after regulators asked market institutions to impose uniform charges on brokers not based on volumes.
- Impact on Brokerages: Brokerages like Angel One, 5Paisa Capital, SMC Global Securities, and Motilal Oswal saw a decline of 6%-2% in early trading.
- BSE Exchange Operator: The exchange operator BSE was down by 1% following the regulatory announcement.
- Regulator's Aim: Regulators aim to reduce the surge in trading across segments like derivatives by eliminating lower fees for high-volume brokers.
- Revenue Stream Concerns: The exchange transaction charge revenue stream, crucial for broker sustainability, constitutes 15%-30% of large brokers' revenues and over 50% of discount brokers' revenues.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
