Stock broking firms fall after SEBI order; Angel One falls nearly 9%

Stock broking firms fall after SEBI order; Angel One falls nearly 9%


The Securities and Exchange Board of India (SEBI) has directed stock exchanges and other MIIs to implement a uniform and uniform fee structure for all members. File

The Securities and Exchange Board of India (SEBI) has directed stock exchanges and other MIIs to implement a uniform and uniform fee structure for all members. File | Photo credit: Reuters

Shares of stock broking firms fell on July 2, a day after market regulator Sebi directed stock exchanges and other market infrastructure institutions (MIIs) to apply a uniform and equal fee structure to all members instead of charging different fees based on their volume or activity.

At the close of trading, shares of Angel One fell 8.72%, Geojit Financial Services dropped 6.83%, Motilal Oswal Financial Services dropped 4.19%, SMC Global Securities went down 2.81%, Dolat Algotech dropped 2.28% and 5Paisa Capital declined 0.05% on the BSE.

During the day, shares of Angel One declined 10.50%, Geojit Financial Services declined 7.59%, Dolat Algotech declined 5.39%, Motilal Oswal Financial Services declined 4.63%, 5Paisa Capital declined 4.51% and SMC Global Securities declined 4.13%.

The regulator directed stock exchanges, clearing corporations and depositories constituted as MIIs to ensure that the charges levied on the end customer are 'as per the label'.

This means that if a certain fee is levied on the end client by the members — stock brokers, depository participants, clearing members — then the MII must ensure that they receive the same amount.

“To begin with, the new fee structure formulated by MIIs should give due consideration to the existing per unit fee charged by MIIs, so that the end clients can pass on the benefit of the reduction in fee,” Sebi said in a circular on Monday.

The regulator has asked MIIs to comply with these additional principles while formulating procedures for levying charges on their members, which are to be recovered from the end clients.

Being public utility institutions, MIIs act as the first level regulators, and are entrusted with the responsibility of providing equal, unrestricted, transparent and fair access to all market participants.


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