Central Depository Services (India) Limited (CDSL) has unveiled a uniform tariff, which will be effective from October 1, 2024.

What Happened: The announcement was made on September 26, 2024, in line with the ‘True To Label’ circular issued by the Securities and Exchange Board of India (SEBI). The revised tariff includes a uniform charge of ₹3.50 per debit transaction.

However, certain discounts that were previously applicable will continue. These include a discount of ₹0.25 per debit transaction for female demat account holders (as sole holder or first holder) and the same discount for debit transactions in Mutual funds and Bond ISINs.

See Also: Trent Jumps Over 3% As Citi Initiates Coverage With ‘Buy’, Sees 21% Upside

Earlier this year, the Securities and Exchange Board of India issued a directive to stock exchanges and other market infrastructure institutions (MIIs) to cease the practice of levying slab-wise fee structures. MIIs are now required to implement uniform fees for all brokers and market participants, regardless of their size or trading volume.

Previously, stock exchanges charged brokers based on a slab-wise fee structure in both the cash and derivatives segments. This tiered approach was designed to incentivize brokers who generated higher turnover, allowing them to benefit from lower fees as their trading volumes increased. While this system aimed to reward brokers driving larger transactions, Sebi argued that it created an unequal playing field.

The market regulator emphasized that the slab-wise fee structure contradicts the principles of equal, fair, and transparent access to the market for all participants. After the announcement, analysts at Ambit Capital had noted that the introduction of “true label” pricing might also push the transaction charges down.

Price Action: CDSL’s share price was down 0.013% to trade at ₹1,496.05 in early trade on Thursday.

Read Next: Oil India, ONGC Shares Have Slipped Up To 18% In 30 Days, But This Brokerage Remains Bullish