Angel One, Motilal Oswal, IIFL shares fall up to 10% after SEBI asks MIIs to levy uniform fees

2 days ago 3

Companies successful the broking manufacture experienced a crisp diminution successful their stock values during today's intraday league pursuing an announcement from the Indian marketplace regulator, SEBI.

On Monday, SEBI successful a circular stated that charges imposed by marketplace infrastructure institutions—including banal exchanges, clearing corporations, and depositories—should beryllium standardised and not tied to trading volumes.

In response, shares of Angel One, Motilal Oswal Financial Services, IIFL Securities, 5Paisa Capital, and SMC Global Securities plummeted by 1% to 10.3%. Angel One recorded the largest diminution among them.

Exchanges often complaint a little interest to brokers if they make precocious volumes, contributing to a surge successful trading crossed segments similar derivatives. Asking exchanges to halt this signifier is portion of a wider acceptable of measures being discussed by the Securities and Exchange Board of India to curb the frenzy successful India's derivative markets.

In a circular, SEBI emphasised that marketplace infrastructure institutions (MIIs), arsenic nationalist utilities and first-level regulators, indispensable supply equal, unrestricted, transparent, and just entree to each marketplace participants.

SEBI highlighted that immoderate MIIs presently usage a volume-based, slab-wise complaint operation for their services, which members (such arsenic banal brokers, depository participants, and clearing members) walk connected to extremity clients daily, portion MIIs cod these charges from members monthly.

This process tin pb to a discrepancy wherever the charges collected from extremity clients transcend what is paid to the MIIs, resulting successful a imaginable misrepresentation. To code this, SEBI mandated that charges should beryllium azygous and not based connected volumes, ensuring transparency and a level playing tract for each marketplace participants.

The regulator said that the charges imposed by MIIs should accurately bespeak what is charged to the extremity client. If a circumstantial MII complaint is passed connected to the extremity lawsuit by members (such arsenic banal brokers, depository participants, oregon clearing members), MIIs indispensable guarantee they person the nonstop amount.

Additionally, it stated that the complaint operation of MIIs should beryllium azygous and adjacent for each members, alternatively than being based connected trading measurement oregon enactment levels. Initially, the caller complaint operation designed by MIIs should see the existent per-unit charges, aiming to trim costs for extremity clients.

Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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