The Securities and Exchange Board of India (SEBI) has issued a new circular mandating a uniform charge structure across all market members, eliminating volume-based transaction fee discounts. This move has led to significant repercussions in the stock brokerage industry. Leading discount broker Zerodha has announced it will likely end its zero-brokerage model and raise derivative trading fees. The new rules have caused shares of Indian brokerages to tumble as firms anticipate reduced income. Deepak Shenoy, CEO of Capital Mind, noted that the new fee rules will hurt brokers more than Futures and Options (F&O) traders. The SEBI directive, part of the 'True to Label' initiative issued on July 1, aims to standardize charges but has introduced business uncertainty for tech-first stock brokers who built their models on low or zero charges. Analysts predict that top discount brokers might see up to a 20% decline in their FY25 topline due to the new regulations.