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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Kamath foresees a brokerage charge for equity delivery trades if options volume dips further
Zerodha, in a business update on its website on Tuesday, flagged a substantial hit of about 40% to its brokerage revenues in the June-ended quarter compared to the same period last year.
In the update, CEO Nithin Kamath attributed this fall to an increase in the securities transaction tax on options, a reduction of expiries to two weekly contracts on options, alongside an increase in basic services demat account (BSDA) limit, removal of exchange transaction charges rebate and a fall in market activity. Much of this impact, he adds, has been playing out since October 2024.
Sounding a pessimistic …
The newly announced levy on UPI payments undermines the very foundation of using digital payments for stock market investing. Brokers are in a tizzy.
India’s second-largest brokerage by active clients wants to handle IPOs as a merchant banker. But gaining a foothold in the highly competitive sector is easier said than done.
The regulator’s shift to an auction-based close was meant to curb manipulation and mirror global markets. Instead, it has run into thin participation that is only amplifying distortions and volatility.
