SMCGLOBAL

Corrects spelling of Zerodha co-founder's name in paragraph 9

Oct 3 (Reuters) - Shares of most Indian brokerages settled lower on Thursday after the markets regulator tightened rules for derivatives trading, while an escalating Middle East conflict weighed on broader markets.

The Securities and Exchange Board of India (SEBI) on Tuesday raised the entry barrier and made it more costly to trade in equity derivatives. The changes will be effective from Nov. 20.

SEBI had first proposed tightening derivatives trading in July.

Online trading platforms Aditya Birla Money ABML.NS and SMC Global Securities SMCG.NS fell the most, dropping 3.7% and 3.8%, respectively. They were flat earlier in the session.

Discount broker 5Paisa Capital PAIS.NS, which rose 3.8% earlier in the day, ended down 2.7%.

The benchmark Nifty 50 .NSEI and S&P BSE Sensex .BSESN posted their worst sessions since early August as the widening Middle East conflict dented risk appetite. .BO

Discount broker Angel One ANGO.NS, was the lone gainer, closing 5.5% higher in a choppy session after analysts at Investec raised the price target on the stock to 3,000 rupees, the second-highest on the Street.

Exchange operator BSE's BSEL.NS shares closed up 2.5% after briefly rising nearly 10%. BSE, which has smaller exposure to the derivatives segment, would be affected less by the new rules than the National Stock Exchange of India, Motilal Oswal said in a note.

SEBI's new rules would hurt 60% of all futures and options trades and 30% of overall trades, Nithin Kamath, co-founder of India's largest brokerage Zerodha, said in a post on X, adding that Zerodha would decide on pricing changes on Nov. 20.

Indian authorities have been flagging concerns about the unchecked explosion of retail investor trading in derivatives and the possibility that it could create challenges for the markets, investor sentiment and household finances.

A SEBI study published last month showed that only 7.2% of individual Indian traders made a profit in futures and options in the three years to March 2024.

($1 = 83.9330 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala and Eileen Soreng)

(([email protected]; Mobile: +91 9591011727;))

** India's benchmark indexes NSE Nifty 50 .NSEI and S&P BSE Sensex .BSESN rise about 0.2% each as minutes of Federal Reserve's meeting signalled likely rate cut in September

** Indexes set to rise for sixth straight session, if gains hold

** "The rising certainty that Fed will cut rates in September is triggering enthusiasm across global markets including India," says Saurabh Jain of SMC Global Securities

** High-weightage financials .NIFYFIN up 0.5%, banks .NSEBANK add 0.6%; nine of the 13 major sectors advance

** The more domestically-focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 gain 0.4% and 0.74%, respectively

** Airlines operator Interglobe Aviation INGL.NS gains 3% after HSBC raises target price and Jefferies upgrades stock to "buy" from "hold" citing sustained earnings momentum

** Telecom company Bharti Airtel BRTI.NS gains 2% after CLSA hikes target price on improving balance sheet and strong cash flow

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

BENGALURU, July 31 (Reuters) - Shares of Indian brokerages fell on Wednesday, a day after the markets regulator proposed several measures to curb trading in options.

The Securities and Exchange Board of India (SEBI) on Tuesday evening proposed raising the minimum trading amount for index options by over three times, reducing the number of contracts expiring each week and hiking margins.

Shares of Angel One ANGO.NS, 5Paisa Capital PAIS.NS, SMC Global Securities SMCG.NS, Motilal Oswal MOFS.NS, Geojit Financial GEOJ.NS, Dolat Algotech DOLA.NS and IIFL Securities IIFS.NS fell between 1%-5%.

"Exchanges and retail focused brokers will be most impacted. Highest impact can come from reduction in the number of weekly option contracts," Jefferies said in a note.

"BSE can offset impact and even gain, if volumes spillover from discontinued products to those which are continued."

Shares of exchange operator BSE BSEL.NS rose 6%.

India has been flagging risks from speculative trading by retail investors, who have been funnelling savings into its booming options market. Last week, the government raised the tax derivative transactions.

In fiscal year 2024, over 9 million individuals and firms dabbled in index derivatives and incurred a loss of 516.89 billion rupees ($6.18 billion), as per a SEBI discussion paper.

Investec expects a 30% drop in number of derivative orders per client for Angel One and sees it raising prices to 25 rupees per order from 20 rupees.

Angel One has slipped more than 39% so far this year, the top loser among brokerages, while Dolat Algotech and Motilal Oswal MOFS.NS are the top gainers, up 117% and 113%, respectively.

India's largest discount brokerage, Zerodha, does not expect a large impact on trading volumes.

"The suggested changes, even with the securities transaction charge increase, won't really change options volumes," Nithin Kamath, CEO and co-founder of Zerodha, said on social media platform X.

($1 = 83.6980 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

Rewrites with Zerodha comments; updates share prices

BENGALURU, July 2 (Reuters) - Zerodha, India's largest discount broker, said on Tuesday it will in all likelihood have to abandon its zero-brokerage model and raise derivative trading fees after the market regulator mandated uniform charges that are not based on volumes.

Exchanges often charge a lower fee to brokers if they generate high volumes. Brokers, in turn, charge traders little to no fees, which has contributed to a surge in trading across segments like derivatives that the Securities and Exchange Board of India (SEBI) wants to curb.

The new fee structure, which kicks in from October, has a significant impact on brokers, traders and investors, Nithin Kamath, CEO and co-founder of Zerodha, said on social media platform 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," he said, referring to futures and options, which are derivative products in the stock market.

"Brokers across the industry will also have to tweak their pricing."

Shares of listed brokerages Angel One ANGO.NS, SMC Global Securities SMCG.NS, Motilal Oswal MOFS.NS, Geojit Financial GEOJ.NS and Dolat Algotech DOLA.NS fell between 3% and 8% on Tuesday.

5Paisa Capital PAIS.NS ended flat, while exchange operator BSE BSEL.NS dropped about 3.5%.

Some of these stocks have jumped 50%-124% so far this year due to a surge in trading activity, with the blue-chip Nifty 50 .NSEI and S&P BSE Sensex .BSESN indexes trading at all-time highs.

The exchange transaction charge, which constitute between 15%-30% of large brokers' revenues and more than 50% of discount brokers', is crucial for their sustainability, said Tejas Khoday, CEO and co-founder of discount broking firm FYERS.

"A 100% pass-through of exchange transaction charges threatens to destabilise the discount brokerage business model," Khoday said.

The revenue impact on Zerodha could be 10%, and 10%-50% for the industry, Kamath estimated.

The SEBI had warned of rising risks due to a surge in derivative trading. Regulators were discussing steps to cool the frenzy, Reuters reported last month.

(Reporting by Jayshree P Upadhyay and Sethuraman NR in Bengaluru; Editing by Mrigank Dhaniwala and Savio D'Souza)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

June 26 (Reuters) - SMC Global Securities Ltd SMCG.NS:

• SMC GLOBAL SECURITIES - UNIT APPROVED DISSOLUTION OF SMC & IM CAPITALS INVESTMENT MANAGER LLP, JV OF SMC GLOBAL SECURITIES

Source text for Eikon: ID:nNSE70G7Js

Further company coverage: SMCG.NS

(([email protected];))

** Shares of SMC Global Securities SMCG.NS rise as much as 9.4% to record high of 178.90 rupees

** The brokerage services provider reports three-fold jump in Q4 consolidated net profit, rev from ops rose ~68% Y/Y

** Co also declared a final dividend of 1.2 rupees per shr

** Share price above 50-day, 100-day and 200-day exponential moving averages since March 27

** Stock is witnessing its most active trading session since Feb. 7, with more than 4.7 mln shares changing hands by 3:01 p.m. IST, 6.3x of 30-day avg

** Stock rose 23.2% in March quarter, its fourth-straight quarterly rise

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

April 9 (Reuters) - SMC Global Securities Ltd SMCG.NS:

• CO'S SHAREHOLDING IN AGARWAL FLOAT GLASS INDIA HAS BEEN DILUTED FROM 6.83% TO 4.84%

Source text for Eikon: ID:nBSE9M1XMX

Further company coverage: SMCG.NS

(([email protected];))

** Shares of SMC Global Securities SMCG.NS rise as much as 10.9% to a record high of 120.9 rupees

** The brokerage services provider said on Monday its consolidated net profit surges ~62% Y/Y aided by uptick in rev from fees and commissions

** More than 3.2 mln shares change hands, 7.7x its 30-day avg; on track for most active volumes since Nov. 13, if trend holds

** Stock gained over 29% in Q3, its best quarterly gain since listing in Feb. 2021

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

Jan 12 (Reuters) - SMC Global Securities Ltd SMCG.NS:

• UNIT INCORPORATED IN USA DISSOLVED

Source text for Eikon: ID:nNSEV0HGW

Further company coverage: SMCG.NS

(([email protected];))

Oct 18 (Reuters) - SMC Global Securities Ltd SMCG.NS:

• SMC GLOBAL SECURITIES LTD - CO'S SHAREHOLDING IN AGARWAL FLOAT GLASS INDIA DILUTED FROM 8.86% TO 6.83%

Source text for Eikon: ID:nBSE46zK7x

Further company coverage: SMCG.NS

(([email protected];))

Sept 7 (Reuters) - Agarwal Float Glass India Ltd AGAA.NS:

• CO’S SHAREHOLDING IN AGARWAL FLOAT GLASS INDIA DILUTED FROM 10.85% TO 8.86% OF PAID UP CAPITAL OF SAID CO

Source text for Eikon: ID:nBSE1HvZdL

Further company coverage: AGAA.NS

(([email protected];))

May 15 (Reuters) - SMC Global Securities Ltd SMCG.NS:

• TO CONSIDER PROPOSAL FOR ISSUANCE OF NON-CONVERTIBLE DEBENTURES

Source text for Eikon: ID:nBSE1rXKf3

Further company coverage: SMCG.NS

(([email protected];))