You are here: Home » Markets » News
Business Standard

Tiger-backed RKSV shoots past rivals, becomes second largest Indian broker

Tiger Global Management-backed RKSV Securities India became the second-biggest broker in the country after nearly doubling the number of its customers to 1.2 million in the 6 months through September

Topics
Tiger Global | Stock broking

Rahul Satija | Bloomberg 

broker, market, shares, trading, stocks, growth, profit, loss, exchange, brokerage
A nationwide lockdown to contain the spread of the coronavirus pandemic has lured millions of new investors into equities

Discount brokers are strengthening their hold on India’s highly competitive industry, with another such firm surpassing all the traditional rivals amid the coronavirus pandemic-related restrictions.

Management-backed RKSV Securities India Pvt. became the second-biggest broker in the country after nearly doubling the number of its customers to 1.2 million in the six months through September, data compiled by National Stock Exchange of India Ltd. shows. Top online broker Zerodha Broking Ltd. also grew the number of clients by 75% to 2.5 million. In comparison, traditional brokers such as ICICI Securities Ltd. and HDFC Securities Ltd. saw meager additions.

A nationwide lockdown to contain the spread of the coronavirus pandemic has lured millions of new investors into equities, helping drive a more than 55% surge in India’s benchmark S&P BSE Sensex from its lows in March. Online brokerages, which charge lower fees, were able to attract most of the new clients than shop-face operators, which faced significant logistics hurdles due to lockdown rules, according to a note by ICRA Ltd., the local unit of Moody’s Investors Service.

Graph

Sales at Indian brokers may grow as much as 12% to about 230 billion rupees ($3.14 billion) in the year to March 2021, ICRA forecast in a note published last month.

“The golden days are still ahead,” said Ravi Kumar, who co-founded 11-year-old RKSV Securities. “Equity participation is 3% or 4% so we’ve barely scratched the surface. People are working from home and they have more time to take care of their finances so that’s helping us open even more accounts than earlier.”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 12 2020. 18:44 IST
RECOMMENDED FOR YOU
.