Zerodha Broking Ltd. may do away with the zero-brokerage model for equity delivery and potentially raise the fees for futures and options trades after SEBI's tweak to bar volume-based brokerage fees.
The Securities and Exchange Board of India introduced guidelines for market infrastructure institutions to ensure fair and transparent fee structures that will be enforced from Oct. 2.
It is done to potentially reduce the costs for end clients like investors and traders, the market regulator said.
But this impacts not only brokers but also trading and investing customers, Chief Executive Officer Nithin Kamath said in a statement on Tuesday.
Since 2015, when Zerodha went zero brokerage on equity delivery, the brokerage has subsidised equity investments with the revenue from the F&O trading activity, Kamath said.
Zerodha Broking Ltd. may do away with the zero-brokerage model for equity delivery and potentially raise the fees for futures and options trades after SEBI's tweak to bar volume-based brokerage fees.
The Securities and Exchange Board of India introduced guidelines for market infrastructure institutions to ensure fair and transparent fee structures that will be enforced from Oct. 2. It is done to potentially reduce the costs for end clients like investors and traders, the market regulator said.
But this impacts not only brokers but also trading and investing customers, Chief Executive Officer Nithin Kamath said in a statement on Tuesday.
Since 2015, when Zerodha went zero brokerage on equity delivery, the brokerage has subsidised equity investments with the revenue from the F&O trading activity, Kamath said. "This structure could now potentially change."
