Shares of Angel One gained over 7 percent on October 1, a day after the discount broking firm revised brokerage charges for cash and equity delivery transactions. Brokerage charges will be levied at a flat Rs 20 or 0.1% GST, whichever is lower per executed order.
A minimum brokerage of Rs 2 per transaction will be levied, the company said in a statement. Angel One was offering the lowest brokerage rate and other charges in comparison to other discount brokerages.
However, Angel One will not charge any brokerage for cash delivery transactions.
The move comes after both the National Stock Exchange (NSE) and BSE revised their 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.
Angel One's management informed CNBC-TV18 that the transition to a new fee structure would reduce its revenue by 8 percent. However, implementing a brokerage fee of Rs 20 per order could help offset this impact.
At 10:45 am, Angel One shares were trading more than 3 percent higher at Rs 2,643.50 on the National Stock Exchange (NSE). The stock has slumped around 26 percent so far this year, underperforming Nifty's returns of 18 percent.
In the past 12 months, however, the counter has risen over 43 percent, nearly. In comparison, Nifty rose 32 percent during this period.
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