25% dabba traders shift to organised platforms

Discount brokers see 15% growth in new clients and 20% jump in trading volumes after the note ban

About 25 per cent of dabba traders, who provide illegal, off-market trading facilities, have shifted to organised exchanges, fearing action such as demonetisation and raids by the Securities and Exchange Board of India, the regulator.

As a result, discount brokers have turned out to be beneficiaries of this shift owing to their low transaction costs compared to full-service brokers.

Three leading discount brokers — Zerodha, Samco Securities and 5paisa.com — which account for most of the market share, have witnessed a 15 per cent growth rate in their client base and 20 per cent growth in business volumes over the