Angel One Chairman & Managing Director Dinesh Thakkar told CNBC-TV18 in a post-earnings interaction on Wednesday, October 16, that the discount broker’s revenue would see an impact between 13% to 14% due to the new and stricter rules introduced by market regulator Securities & Exchange Board of India (SEBI).

SEBI announced six new norms on earlier this month, that ranged from upfront premium collection to limiting weekly expiry of index derivatives. These six norms will come into effect between November 2024 and April 2025.

“Based on current analysis that we have done, total impact on our net income (revenue) would be in the range of 13% to 14%. Because a customer who has decided to come to the market, will come trade. They may trade in F&O segment, or in the cash segment. So I am talking in terms of overall impact on our total income,” Thakkar said.

The Angel One CMD also does not see a more than 20% to 22% impact on its Futures & Options volumes as customers will move to the cash segment.
Angel One has recently revised its brokerage charges for cash and equity delivery transactions, which will take effect from November 1.

This move from Angel One came after both National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) revised their own transaction charges from October 1, moving to a true-to-label fee structure instead of a slab-wise fee structure, as was the case earlier.

Thakkar does not see a bigger impact from a shift to a true-to-label fee structure. He further added that the company will maintain its EBITDA margin between 45% to 50%. He further added that the revenue impact could be offset by hiking prices, but the company will take a decision on the same only after observing for “a quarter or so.”

Out of the nine analysts that have coverage on Angel One, six of them still have a “buy” rating on the stock, two of them say “hold”, while one has a “sell” rating on the stock.

Shares of Angel One have recovered more than 6.5% from the lows of the day and are currently trading 2% higher at ₹3,289. The stock has recovered over 50% from the lows that it had made in July this year.

You can watch the entire conversation with Angel One CMD Dinesh Thakkar here.