Angel One's shares finally saw some respite from a four-day losing streak - due to revised market intermediary charges - rising by 3 percent as company registered a rise in client base and the number of orders in June.
Angel One's client base was up 3.7 percent on month to 2.47 crore in June. On a yearly basis, the client base increased by 64.2 percent.
In addition, the total number of orders for the broking company grew around 6 percent month-on-month and 87.3 percent on year to 16.80 crore. Average daily turnover for the company also rose 4.4 percent on month to Rs 45.74 lakh crore in June.
At 09.41 am, shares of Angel One were trading at Rs 2,391.60 on the NSE.
The stock has been on a decline over the last four sessions after the Securities and Exchanges Board of India's new circular revised market intermediary charge mechanism, a move that may erode company's revenue.
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SEBI's new circular prohibits Market Infrastructure Institutions (MIIs) like stock exchanges and clearing corporations from offering discounts based on turnover.
Currently, MIIs levy transaction charges and depository fees on brokers using a slab-wise structure, and brokers similarly pass these charges to customers. Brokers collect these charges daily from clients, while MIIs receive the total charges monthly. This timing difference results in brokers collecting more from clients than they pay to MIIs due to slab benefits.
Motilal Oswal Financial Services believes that discount brokers’ revenue may be impacted by SEBI's new circular, as a significant portion of their income comes from such charges, particularly given their large base of retail customers with lower volume/ticket size. For instance, Angel One earned about Rs 400 crore from these charges in FY24.
Also Read | Angel One stock declines 10% on SEBI's revision in market intermediary charge mechanism
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