Stock Broking Firms Decline as SEBI Imposes Uniform Charge Structure

Stock broking firms' shares declined after SEBI ordered a uniform charge structure for all members of the market infrastructure institutions. Key players such as Angel One, Geojit Financial Services, and Motilal Oswal experienced significant drops in shares. The new structure aims to ensure fair and transparent charging processes for end clients.

In a major regulatory update, shares of stock broking companies saw a notable decline on Tuesday following SEBI's directive to enforce a uniform charge structure across all market members. This move aims to eliminate varied charges based on member volume or activity.

The stock market witnessed significant drops with Angel One plummeting 8.72%, Geojit Financial Services down by 6.83%, and Motilal Oswal Financial Services declining 4.19%. The directive emphasizes that new charges levied on end clients must reflect the true nature of services provided, with no discrepancies.

SEBI has mandated that the new charge structure should lead to a reduction in costs for end clients, ensuring a fair and transparent market ecosystem. Market infrastructure institutions, acting as first-level regulators, are now tasked with implementing these changes effectively.

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