Impact of New SEBI Rules on Angel One’s Revenue Trend
Revenue Impact:
The new SEBI regulations, particularly those affecting the derivatives segment, have had a noticeable impact on Angel One’s revenue. The company estimates that these regulations could result in a revenue impact of approximately 13-14% of net income from clients related to broking activities. This includes changes such as increased contract sizes for index derivatives and rationalization of weekly index derivative products
.Revenue Trend Changes:
Despite the regulatory challenges, Angel One has continued to show strong financial performance. In Q2 FY25, the company achieved its highest ever quarterly total gross revenue, crossing the ₹15 billion mark for the first time, which represents a 7.5% quarter-on-quarter growth
However, the impact of SEBI’s true-to-label regulations, which extinguished certain transaction income from October 1, 2024, has been mitigated through strategic measures such as introducing brokerage charges on cash delivery orders and imposing interest on non-cash collateral exceeding ₹50,000
.Management’s Mitigation Strategies:
To counteract the revenue loss due to SEBI’s new rules, Angel One has implemented several strategies:
- Tariff Adjustments: The introduction of brokerage charges on cash delivery orders and interest on non-cash collateral aims to offset the revenue impact.
- Focus on Long-term Client Value: The company remains optimistic about long-term client value by enhancing customer retention through diversified product offerings.
- Product Offering Adjustments: Rationalizing interest rates on margin trading facilities to remain competitive and attract more clients.
Overall, while SEBI’s new regulations have posed challenges, Angel One’s proactive measures and strategic initiatives are expected to help sustain growth and mitigate revenue losses in the long term.
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