What is SEBI New Levy Order and How Does it Impact Discount Brokers?

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Discover the key points of SEBI's new levy order and its impact on discount brokers

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What is SEBI's New Levy Order?

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Effective Date

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Impact on Discount Brokers

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Revenue Sources for Brokers

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SEBI's Clarification

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New Charge Structure

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Future Outlook

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What is the Most Interesting Fact That You Know and I Don't, But I Should?

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What is SEBI New Levy Order and How Does it Impact Discount Brokers?

What is SEBI New Levy Order and How Does it Impact Discount Brokers?

Discover the key points of SEBI's new levy order and its impact on discount brokers

What is SEBI's New Levy Order?

SEBI has directed stock exchanges to charge all their members uniformly, prohibiting discounts based on trading volumes or activity

Effective Date

The new provisions will take effect from October 1, 2024

Impact on Discount Brokers

This change will significantly impact the revenue of discount brokers, who rely heavily on paybacks from exchanges

Revenue Sources for Brokers

Discount brokers earn a substantial portion of their income from paybacks provided by exchanges for the volumes they generate

SEBI's Clarification

SEBI stated that MIIs must provide equal, unrestricted, transparent, and fair access to all market participants

New Charge Structure

MIIs are directed to ensure that charges recovered from end clients are true to label and uniform for all members

Future Outlook

Brokers may need to revise their pricing models, potentially ending zero brokerage for equity delivery trades and increasing F&O brokerage

What is the Most Interesting Fact That You Know and I Don't, But I Should?

What is the Most Interesting Fact That You Know and I Don't, But I Should?

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