 "Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters")
Discount brokerages are likely to make further inroads in the broking industry, with traditional smaller players expected to lose client base as norms kicking-in from next month will make it difficult to give flexibility over margin obligations.
“The new norms remove the regulatory arbitrage on margin collections that traditional full-service brokerages were able to take advantage of. With upfront margins becoming mandatory across industry, players charging flat-broking fees to intraday traders are likely to gain traction,” said Jimeet Modi, founder and chief executive officer of Samco Securities.
Earlier, small broking houses were able to attract clients by allowing them to
