Kotak Sec goes for flat brokerage

Kotak Securities has introduced fixed broking commission at a time when the broking industry is facing pressure on revenues amid scaling down of operations by some firms.

Kotak's flat fees will be within a size band for transactions in delivery and non-delivery cash and derivative markets.

The scheme has a fixed fee of Rs 9 per transaction for non-delivery trades of up to Rs 50,000 against the prevailing variable rates of up to Rs 25 to Rs 35 for a similar transaction.

"Internationally, fixed fee is the norm and we have had a lot of feedback from the market that such a scheme will attract customers," said Narayan SA, managing director, on the reason behind the move, which may trigger similar launches by others.

"In three to four years, we expect the majority of trades to happen through fixed fee route. Depending on the customer response we will consider expanding the scheme to other target customers also," Narayan added.