SEBI circular on transaction charges: Angel One shares fall as much as 10%

SEBI circular on transaction charges: Angel One shares fall as much as 10%

Shares of Angel One fell as much as 10% on Tuesday after SEBI's new circular on transaction charges.

The new SEBI Circular said that MIIs or Market Infrastructure Institutions should not give discounts based on turnovers. Stock exchanges, clearing corporations are also part of MIIs.

Currently, discount brokers earn between 15% and 30% via transaction charge discounts, while for deep discount brokers, that number rises further to 50% to 70%.

Investors currently pay transaction charges daily, while brokers provide a monthly account to the exchanges.

Market regulator SEBI wants transparency in transaction charges and that the exchanges should not charge different transaction charges and instead create similar fee structure for all players.

The regulator also wants players to get advantage of slab discounts.

SEBI's new circular is to take effect on October 1, 2024.

For Angel One, it currently charges zero brokerage up to ₹500 for intraday trading for the first 30 days, post which, it charges the lower of ₹20 or 0.03% per executed order. Within the F&O segment, it also charges zero brokerage up to ₹500 for the first 30 days and then charges ₹20 per executed order.

Shares of Angel One are trading 7.2% lower at ₹2,391.9. The stock has been an underperformer in 2024, declining 33% so far.

Shares of BSE are also trading 1.8% lower at ₹2,527 on Tuesday, while those of Motilal Oswal Financial Services are trading with losses of 2% at ₹579.8.