Zerodha Doubles Intraday F&O Charges Following SEBI Collateral Norms
Zerodha has announced an increase in certain intraday futures and options (F&O) charges, raising them to ₹40 per order. The move comes in response to new regulatory guidelines introduced by the Securities and Exchange Board of India (SEBI), which mandate that at least 50% of collateral used for margin trading must be in cash or cash equivalents.
The revised norms have significantly impacted brokerage firms, as they now need to maintain higher cash margins instead of relying heavily on non-cash collateral such as stocks. This shift has increased operational costs for brokers, prompting adjustments in their fee structures.
Zerodha stated that the hike in intraday F&O charges is necessary to offset the additional compliance and funding costs arising from the new regulations. The brokerage emphasized that the changes are limited to specific segments and are aligned with industry-wide adjustments.
Market participants may feel the impact of higher trading costs, particularly active intraday traders who execute multiple trades daily. However, the move is expected to enhance overall market stability by ensuring better risk management and reducing excessive leverage.
The development highlights the evolving regulatory landscape and its direct influence on brokerage operations and trading dynamics in India’s derivatives market.