Sebi diktat: Big impact if brokerages do not change their revenue model: Ajay Kejriwal

economictimes.indiatimes.com:

Ajay Kejriwal, CEO, Choice Equity Broking, says that from the investor's perspective, it is going to have an impact, more so from a trader’s perspective, because some traders had that benefit and some did not. Now all will be at par. And though it is minuscule on the client end, it will benefit the traders.

Differential offering was the norm. The regulator, Sebi, came out and said no preferential rates, it should be uniform and now some of the biggest voices in technology-backed low-cost broking are coming out and saying that we may have to hike charges. What is the future? Is the zero broking era over and now, even if it is low, charges would have to be levied?

Ajay Kejriwal: Yes. All the depositories or exchanges offered different volume-based rates and charges, which were to some extent passed on to clients and some extent retained by the broking house. So, it will have an impact on the brokers who are keeping that share with them and they have to revise their charges or tweak their models based on whether zero brokerage will continue or somewhere offering free in other segments so that free charges they are looking forward to make some a little bit more charge on the industry.

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From the investor's perspective, it is going to have an impact, more so from a trader’s