Brokerage house Angel One may have to abandon its zero brokerage fee model in response to a directive from the Securities and Exchange Board of India (Sebi) to levy uniform transaction fees on stock brokers, regardless of trading volumes.

“We have enough levers to offset the impact of this true-to-label regulation, and a change in pricing is not ruled out. We would like to consider pricing adjustments on certain services and areas where we were not charging,” Dinesh Thakkar, chairman & managing director of Angel One, said in a post-earnings conference call on Tuesday.

Currently, the stock exchanges charge brokers a transaction fee based on their total monthly turnover. Higher turnovers attract lower transaction fees, a differential known as a rebate, which is the difference between what brokers charge their clients and what the exchanges charge brokers at the end of the month.

In the first quarter of the current fiscal, Angel One received Rs 110 crore as a rebate, recorded as ‘ancillary transaction income’, comprising 8% of its total gross revenue. For FY24, the firm received Rs 350 crore in rebates from stock exchanges.

Consolidated revenue from operations surged 74.1% year-on-year to Rs 1,405 crore in Q1FY25, compared with Rs 807 crore in the same period last year. However, starting October 1, the brokerage will lose this rebate income unless it passes the cost on to its customers.  

HDFC Securities, in a report dated July 2, estimated an impact of 5% on Angel One’s net revenues for FY25 and 10% for FY26.

Additionally, Angel One also expects some revenue and margin impacts due to tighter norms for acceptable collaterals by clearing houses. With the NSE Clearing house disallowing over 1,000 low-activity or high-impact-cost scrips for pledging as collateral, Angel One may need to pass these changes on to its customers or adjust pricing, the brokerage house said on Tuesday.

Thakkar said there is enough elasticity in Angel One’s pricing  mechanism to manage these regulatory changes. “This is competition-sensitive information and we do not wish to disclose our strategic thinking,” Thakkar said. However, he noted that other discount and online brokers would face similar impacts on unit pricing.


Consolidated net profit rose 32.55% year-on-year to Rs 292.7 crore in Q1FY25, up from Rs 220.8 crore a year ago.