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Stockbrokers collapse; Angel One drops over 10%

Stockbrokers collapse; Angel One drops over 10%

Shares of brokerage firms fell on Tuesday, a day after regulator Sebi directed stock exchanges and other market infrastructure institutions (MIIs) to implement a uniform and equal fee structure for all members instead of varying charges based on their volume or activity.

Shares of Angel One fell 10.50 percent, Geojit Financial Services plunged 5.86 percent, Dolat Algotech fell 5.39 percent, 5paisa Capital fell 4.51 percent, Motilal Oswal Financial Services fell 3.70 percent and SMC Global Securities fell 2.41 percent on the BSE.

The regulator has ordered exchanges, clearing houses and custodians that are classified as MIIs to ensure that all costs recovered from the end customer are ‘True to Label’.

This means that if certain fees are charged to the end customer by members (brokers, depository participants, clearing members), MIIs must ensure that they receive the same amount.

“To begin with, the new tariff structure designed by MIIs should adequately take into account the existing per unit tariffs being achieved by MIIs so that the end customers benefit from the lower tariffs,” Sebi said in a circular on Monday.

The regulator has asked MIIs to adhere to these additional principles when designing the processes for the fees charged to their members and recovered from end customers.

MIIs act as public utilities as top-level regulators and are responsible for providing equal, unrestricted, transparent and fair access to all market participants.

Published: Tuesday, July 2, 2024, 1:23 PM IST