Sebi to boost trading cost transparency

The Securities and Exchange Board of India (Sebi) is aiming to further boost transparency around trading charges incurred by investors.

- KHUSHBOO TIWARI

The regulator has embarked upon a drive to unbundle fees charged by stock exchanges and clearing corporations (CCs)—a move that will provide greater clarity on the trading cost structure. The move is critical for independence of CCs from stock exchanges. However, a long-mooted proposal for changing ownership has been put on the back burner.

Following its board meeting on June 18, 2025, Sebi Chairman Tuhin Kanta Pandey clarified that the regulator was not pursuing structural or ownership changes for CCs. Instead, Sebi has established a working group to examine the separation of trading and clearing charges, and to assess the independence and governance of CCs, which are currently wholly owned subsidiaries of stock exchanges. This initiative aims to enhance transparency by clearly delineating fees paid to exchanges and CCs.