@Bhuvan how will this affect coin? Will Coin also start levying a fee?
Still getting clarity on this. Give us a few days and we’ll post an update.
Sounds quite positive based on a first read. Coin already does only Direct.
I think the bigger impact will be on Scripbox and other companies, where the orders are sent into the regular plan which gives the company a commission. SEBI seems to be saying that if a company is acting as a platform it should only be sending orders for Direct, and can maybe take a flat fee instead.
I think Scripbox and others will have to start charging a fee, they can’t claim to be ‘free’ any more.
Coin is already a charity project and doesn’t make any money off customers mutual fund investments, doesn’t look like much of an impact other than registration.
I feel scriptbox is the only clear platform being disingenuous with it’s customers saying no hidden fee or fees but actually not mentioning that the commission they earn is taken from the customers themselves but it’s just via AMC (they only mention AMC Part).
But I don’t think Scriptbox would be asked to charge any fees because they do provide suggestions/advice. Maybe they will be forced to be more honest with their customers though.
This new regulation seems to be mainly for platforms give any suggestions/advice and offers Direct MF. Coin perfectly fits this example. I do agree Coin is a charity project. It actually losses more money because when you sell MF, Zerodha bears the DP charges of 5.5 Rs.
So imo this affects platforms like Groww, Kuvera, Coin, INDMoney, etc, more than it affects Scriptbox. I can definitely see some platforms even Coin start charging a nominal fee especially because I think previously the idea was LAS would get them money don’t know how profitable LAS for MF has been for them.
Direct plans would still be useful as though as the fee is one time instead of until you sell your MF units in case of regual plans. But not sure if Coin would be useful with all it drawbacks especially if it also starts charging fees. Traders might still purchase from Coin though since they can pledge them for margin.
ok… one way to look at it, Zerodha charges flat fee of in form of yearly AMC.
Guy like me, who practically do not invest in stocks, pays the AMC just for MF management at one place (and SGB… which is technically purchase from coin)
Same here. I set up my cousins account in Zerodha and it’s primarily used only for Coin SIP’s and 20K worth of stocks. Overall the portfolio is around 1.3 L after 2 years and so now it doesn’t come under BSDA either. He has paid around 500-550 in AMC charges + account opening charges. I consider this the fee already paid so for the service Zerodha offers to him. Hope Coin doesn’t charge anything and remains free like it’s right now.