SEBI Mandates Uniform Charge Structure for Market Infrastructure Institutions

SEBI has directed all stock exchanges and other market infrastructure institutions (MIIs) to implement a uniform charge structure. The move aims to ensure transparency and fairness by eliminating volume-based charge discrepancies. MIIs must align their charge processes to benefit end clients while maintaining equal market access for all participants.

In a significant regulatory move, the Securities and Exchange Board of India (SEBI) on Monday instructed stock exchanges and other market infrastructure institutions (MIIs) to adopt a uniform charge structure for all members. This directive aims to eliminate the existing practice of varying charges based on volume or activity.

The regulator emphasized that charges recovered from the end client by members, such as stock brokers and depository participants, must be 'True to Label'. This means the exact amount levied on the client should be passed on to the MIIs without discrepancies.

SEBI indicated that the new charge structure should consider existing per unit charges, ensuring that clients benefit from reduced costs. MIIs are asked to comply with these principles to maintain fairness, transparency, and equal access for all market participants.

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