Zerodha will double brokerage fees to ₹40 for specific intraday futures and options trades starting April 1. The increase applies to traders failing to meet SEBI's 50% cash collateral requirement, which the firm had previously covered. The decision comes amid declining trading volumes and potential hikes in securities transaction tax.
Indian brokerage Zerodha announced it is raising brokerage charges from April 1 for intraday derivatives trades where clients do not comply with the Securities and Exchange Board of India's (SEBI) mandate for 50% cash collateral. Previously, Zerodha absorbed the shortfall to support these trades, but the firm will now charge ₹40 per order for non-compliant positions in futures and options (F&O) segments, effectively doubling the fee from ₹20. This adjustment reflects broader pressures in the industry, including falling trading volumes and anticipated increases in securities transaction tax (STT), which could raise operational costs for brokers. Other discount brokers are reportedly evaluating similar fee hikes to maintain profitability. Zerodha CEO Nithin Kamath has been associated with discussions on regulatory impacts, though specific comments on this change were not detailed in the announcement. SEBI introduced the cash collateral rule to enhance margin requirements and reduce speculative trading risks in the derivatives market. The move by Zerodha underscores how tighter regulations are reshaping pricing models for retail traders in India's booming equity markets.