SEBI recently issued a circular stating that market infrastructure institutions (MIIs) have to be “true to label” in the charges they levy from October 2nd, 2024. This circular has an impact not only on brokers but also on trading and investing customers.
In this post, @nithin, explains what it means and how it affects you, the customer.
I enjoyed the free delivery on equity, thank you Zerodha. It is all well and good for any beginner or low capital people like me. Hope the upcoming brokerage hike won’t break the bank of small retails
No problem
SEBI and broker can trade each other , always Retailer have more option
I am trading in charles shaw account , there margin system is super , superior ETF available
All are talented people ,
SEBI cannot give circular for me ,dont trade in usa market ,sebi cannot tell to dont trade in Crypto option
Already SEBI and RBI crushed USD INR option segment , SEBI already kill commodity segment
Then why NSE daily opening bell 
, Now SEBI have Irritating the bell sound , they pull the NSE bell one day
SEBI is Overthinking
Increasing fno brokerage??? 
Please nooo
Even 1re for equity delivery brokerage should solve it right? I dont think so exchange is giving more than 300-400cr per broker?
And the persistent fiddling continues. Every month there is a tweak, a tightening, a loosening, delivery change, 80% sell value, t+1, t-1 … some random bullshit served like clockwork.
@ShubhS9 Couldn’t you fight back or something ?
Read the article, not really able to place SEBI’s intentions
Any incremental cost is a drag to the “retail” traders. @nithin, no trader would prefer to have an increase in cost - whether it’s BrokerA or BrokerB. And for investors - they are not really worried about short term costs.
As you wrote, the 2nd order or multi order impact is yet to be analyzed, what good does this new change brings? Tell us any one stakeholder who is benefitting.
It affects the biggest brokers the most. Not these small ones.
Plus If you spend 10 seconds looking at their site, you can see they only have 2 sources of revenue. One is gone now. So this will definitely impact them. Wait for 6 months I would say.
MTF you cannot charge high and cover brokerage. People just pick the lowest interest rate.
I always tell people to pay for the product, especially with banks & brokerages. No one will manage your money and stocks for free. If it is free for you, it is just someone else paying for it, be it F&O traders or some VC firm flush with cash. When that ends, you will have to pay.
Devils advocate, and some fun 
Conspiracy against Free brokers by lobby of top brokers 
The ones who charge will anyway derive their pound of flesh 
I can see where you are coming from. They may want zero brokerage industry to be finished, so that those customers come to those big ones and start paying brokerage. But will this really compensate for the humongous loss of revenue from exchange rebates? Highly doubt it. Big brokers with those traders must have too huge of a volume by existing traders alone. Losing the rebate on that huge volume to get brokerage from that small lot of customers doesn’t really seem practical. (Obviously would need the data for exact numbers)
Did you forget,the big player is entering!!!
Traders khush hojao … Bahut khoob offers aane ko he…
@nithin sir
If possible , please suggest SEBI to introduce ‘mini / micro’ futures. That way we can highly reduce the unwanted volume surge in options ( as SEBI worried about it ) and keep everything clean. These mini and micro futures doesn’t have theta decay , so it will highly reduce the chances of unnecessary losses. Sellers can always bet their money on options , as they are doing now. If it happens, I think this will be the best thing SEBI can do to retail traders, as they will 99% shift from options to mini and micro futures 
Sellers need buyers to sell my friend
Of course they will. But the spikes will reduce significantly. Win win for both
In India, One paper degree + UPSC exam pass + gov job can destroy the entire industry. This is why people are going abroad and don’t want to come back. Frustrating youth are India’s curse. 
In every business, prices are determined based on specific conditions. Among competitors, there is typically a price variance of 5-10%. However, in this particular market, we observe a wide disparity: one broker charges Rs 95 per lot, another charges Rs 20 per lot, and yet another charges Rs 20 per order, regardless of lot size. It is high time SEBI rationalizes these charges. Implementing a standard charge of Rs 100 per lot would eliminate these discrepancies. Consequently, those exploiting the system would disappear, and the market would be free of such ‘monkeys.’
Almost all popular brokers are at 20/order rate.
Zerodha, Groww, Angel One, Upstox, Dhan, Paytm Money
Motilal Oswal is at 20/lot. ICICI Direct at 95/lot
Those are full service brokers. their prices are bonkers. Not relatable.
Why use something that charges per lot instead of per order?
@nithin, I know you might not like to comment on other brokers but since you mentioned this in the post,
Many newer brokers who started out with free delivery trades have started charging a brokerage in the last couple of years
Can you state who they are?
Checking the sites of popular brokers, everyone has free delivery of some manner. Zerodha, Dhan, Angel One, and so on. Others like Groww, Upstox charge for delivery but they have 0 AMC so the costs are similar.
If and when the circular comes into effect by October 2024, can we expect the changes you mentioned (equity delivery brokerage or increase in F&O brokerage ) by the same time, or will it take a few more months after October to be implemented?
It would be helpeful for having a clarity on Zerodha’s deadlines on change of charges, to ensure we have enough time to adjust our strategies.
