Profitability of small brokers to dip on new SEBI F&O rules: CRISIL
2 months, 2 weeks ago

Profitability of small brokers to dip on new SEBI F&O rules: CRISIL

The Hindu  

A series of regulatory measures announced by the Securities and Exchange Board of India to curb retail participation in F&O trade, may lead to small and discount brokers losing margins and profitability, according to a research note prepared by credit rating agency Crisil. The impact of the increase in transaction charges may be more severe for discount brokers as they cater more to retail consumers. Another change that may reduce profitability for discount brokers is that the transaction charges levied on retail investors must be the same as those paid to exchanges. The regulatory changes, although strengthening the market, may make it difficult for small brokers to scale up and increase compliance costs, said Crisil.

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