• Source:PTI
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The shares of major stock brokers fell after markets regulator Sebi directed exchanges and other market infrastructure institutions (MIIs) to implement a uniform and equal fee structure for all members, instead of different fees based on their size or activity.Angel One fell 10.50%, Geojit Financial Services fell 5.86%, Dolat Algotech fell 5.39%, 5paisa Capital fell 4.51%, Motilal Oswal Financial Services fell 3.70% and SMC Global Securities fell 2.41%.

The regulator has instructed stock exchanges, clearinghouses, and depositories that act as MIIs to ensure that any fees recovered from the end customer are 'True to Label'. This means that if the end customer is charged a certain fee by members-stockbrokers, depository participants, and clearing members MIIs must ensure that they receive the same amount.

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"To begin with, the new charge structure designed by MIIs should give due consideration to the existing per unit charges realized by MIIs so that the end-clients benefit from the reduction of charges," Sebi said in a circular on Monday.

The regulator has required MIIs to adhere to these additional principles while designing the fees charged to their members, which will be recovered from end customers. Multilateral investment institutions, as public utilities, act as first-level regulators and are entrusted with the responsibility of providing equal, unfettered, transparent, and fair access to all market participants.

(With PTI's Input)

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