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Economic Times
30-06-2025
- Business
- Economic Times
Sebi extends cybersecurity framework compliance deadline by 2 months
Markets regulator Sebi on Monday extended the deadline by two months till August for regulated entities to adopt and implement the cybersecurity and cyber resilience framework. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets regulator Sebi on Monday extended the deadline by two months till August for regulated entities to adopt and implement the cybersecurity and cyber resilience framework The framework is designed to ensure that Sebi-regulated entities (REs) maintain a robust cybersecurity posture, remain equipped with adequate cyber resiliency measures and can withstand, respond to, and recover from cyber threats, move came after Sebi received multiple requests for extension of timelines to ensure ease of compliance for them."Therefore, it has been decided to extend the compliance timelines by two months, i.e., till August 31, 2025 to all REs, except Market Infrastructure Institutions (MIIs), KYC Registration Agencies (KRAs), and Qualified Registrars to an Issue and Share Transfer Agents (QRTAs)," Sebi said in a marks the second extension granted by the the need for robust cybersecurity measures and protection of data and IT infrastructure, Sebi issued the Cybersecurity and Cyber Resilience Framework (CSCRF) for its regulated entities in August receiving various queries from REs seeking clarification on the framework, the Securities and Exchange Board of India (Sebi) issued a clarification in CSCRF is a significant step in adapting towards evolving cyber risks and technological regulator emphasised that the framework aims to enhance the resilience of regulated entities, enabling them to withstand and recover from cyber incidents regulator said the stock exchanges and depositories have been directed to inform their members and participants of the updated compliance deadline and disseminate the circular on their respective websites.
Economic Times
22-05-2025
- Business
- Economic Times
Why is Groww raising brokerage fees by 150% for small trades?
The new rules allow brokers to levy transaction charges on clients that they would pay the Market Infrastructure Institutions (MIIs) - stock exchanges, clearing corporations, and depositories. Synopsis Groww, a major Indian brokerage firm, will increase its minimum equity brokerage charges. The increase is from ₹2 to ₹5 per order. This change impacts smaller equity trades. The new fee structure will be effective from June 21. Other brokers like Angel One previously raised their fees. These changes follow regulations impacting brokerage profits. Mumbai: Groww, India's largest broker in active clients, is set to increase its fees by 150% for low-ticket transactions as the profitability of discount broking firms has come under pressure in the face of tighter regulations. ADVERTISEMENT The firm, in a communication to clients, said it will hike the minimum equity brokerage charges to ₹5 per order from ₹2, for equity trades from June 21. The move is expected to increase the trading costs of smaller transactions. The IPO-bound firm with about 13 million active clients will charge brokerage fees in the range of ₹5 to ₹20 per trade against ₹2 to ₹20, currently. Other larger brokers, like Angel One, also had increased their brokerage charges from 0 to ₹20 on equity trades late last year, after the Securities and Exchange Board of India's 'true-to-label' norms announced in July last year squeezed brokerages' profits. The new rules allow brokers to levy transaction charges on clients that they would pay the Market Infrastructure Institutions (MIIs) - stock exchanges, clearing corporations, and depositories. This has eliminated the hidden markup, which has hit brokers' profitability. 'Following the regulatory changes introduced last year, we've seen a notable decline in derivative volumes across Indian markets, which has had a significant impact on broker revenues,' said Ashish Nanda, President and Digital Business Head at Kotak Securities. 'Sebi's 'True to Label' circular further removed the rebates that previously contributed 10 to 50% of brokers' income.' Equity derivatives turnover on NSE declined 27% to Rs 39.5 lakh crore in March from Rs 54.4 lakh crore in September, according to NSE. Nanda said due to these pressures, many firms have resorted to price hikes as a way to offset the financial hit. After the regulatory tightening, Zerodha founder Nithin Kamath said on X: 'With the new circular, we will, in all likelihood, have to let go of the zero brokerage structure and/or increase brokerage for F&O trades. Brokers across the industry will also have to tweak their pricing.' Groww also revised the interest rates for the MTF (Margin Trading Facility) — a system that allows investors to borrow to buy shares they cannot afford —at 14.95% per annum. Currently, the broking firm charges 15.75% per annum as MTF interest for funding amounts less than Rs 25 lakh and 9.75% for Rs 25 lakh and above. ADVERTISEMENT This decision will make it more expensive for the high-volume users of the MTF facility. Groww said the Depository Participant (DP) charges for clients will also go up from Rs 18.5 per day per stock (irrespective of the number of sale transactions in a stock) to Rs 20 per sale transaction 'Earlier, you were charged DP charges once per stock (ISIN) per day,' said the firm in the client communication. 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