SEBI's New Rule Wiped ₹400 Cr: Your Trades Costlier?

SEBI's true-to-label rules killed a big hidden income source for discount brokers like Zerodha. That income used to subsidise low brokerage fees. Now platforms may quietly raise costs for retail traders and investors.

Here's what happened: SEBI's true-to-label norm eliminated the income gap brokers earned between client-charged transaction fees and actual exchange fees, wiping out what was a ₹400 Cr revenue line for Zerodha in a single year.. Overall broking revenue for Zerodha fell roughly 10% year-on-year in FY26, reflecting both the regulatory hit and a broader slowdown in retail F&O trading volumes after SEBI tightened derivatives rules.. With core brokerage income under pressure, discount brokers across India are now accelerating plans to earn from lending, wealth management, and subscription-based platform fees instead..

What you should do: Review your broker's current fee schedule — log in and check the tariff page for any new AMC, platform, or call-and-trade charges introduced in the last six months.. Compare total annual cost of your trading account across 2-3 platforms (Zerodha, Groww, Angel One) using their fee calculators before assuming your current broker is still the cheapest.. If you invest only in mutual funds and rarely trade stocks, consider moving to a direct-plan platform like MF Central or your AMC's own app to avoid paying broker platform fees entirely..

Direct mutual fund plans bought through an AMC's own website or MF Central have zero platform fee and give you 0.5–1% higher annual returns than regular plans — no broker needed.

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