Stock broker count halves in three years on high costs, falling margins

The number of brokers operating in the cash segment has almost halved in the past three years as high compliance costs, declining margins and the closure of regional stock exchanges have forced nearly 3,400 brokers to shut shop. The count has reduced to a third since 2013.

The broker count stood at 2,773 as of September 2018, down from 9,606 in the corresponding period five years ago, the data collated from the Securities and Exchange Board of India (Sebi) shows. 

“Business is moving to larger brands, compliance costs have risen significantly in the past few years, and margins have declined. All this