Zero brokerage plans nearing expiry
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Mumbai: Zero brokerage as a service perquisite could well be a thing of the past as regulatory changes, such as Tuesday's new measures aimed at curbing the F&O frenzy, push up transaction charges and cause trading volumes to decline. Angel One, India's third-largest brokerage by client count, introduced a flat fee of ₹20 or 0.1% of turnover (whichever is lower) on cash market transactions starting November 1, anticipating a drop in revenues from the derivative segment. Previously, these transactions were free of charge. Market participants expect other brokerages to raise their fees, which could take the sheen off discount broking that had broken the stranglehold of big banks. "In the changing environment, it is no longer easy for the broking industry to survive on such low fees," said Dhiraj Relli, MD, HDFC Securities. "Fees will have to increase, especially for discount broking firms, as they have been relying...