 "Pranav Haridasan, MD & CEO of Axis Securities")
Stricter rules by the Securities and Exchange Board of India (Sebi) have curbed volumes and speculative activity but the broking industry’s “structural growth” will continue due to retail participation, financialisation of savings, and institutional flows, said Pranav Haridasan, managing director and chief executive officer of Axis Securities. Haridasan, in an interview with Samie Modak in Mumbai, said brokers must differentiate through advisory, technology, and customer experience rather than relying solely on pricing. Edited excerpts:
What is your outlook for the broking industry? What kind of growth do you expect?
The broking industry in India is in a structural growth phase. Rising household participation, deeper financialisation of savings, and steady institutional flows are building a long runway. Over the next several years, topline growth in the mid-teens looks sustainable, with upside for brokers who can combine technology, trust, and advisory.
In the near term, the setup is also improving. Direct tax cuts and GST rationalisation are putting more money in consumers’ hands, with further reforms and trade deals with the UK, EU, and potentially the US adding tailwinds. Post-correction valuations and a base-effect on earnings point towards stronger momentum in the second half. Volatility may remain, but the structural direction is clearly upward.
Trading volumes have declined from their highs after Sebi’s tightening measures. Do you think the trend has bottomed out?
Volumes have moderated with lower leverage and reduced churn but that’s a healthy reset rather than a structural decline. Market breadth is improving, valuations are more attractive, and global flows are stabilising. These signals suggest the bottom is behind us, with cash-market activity set to revive as confidence builds.
How have other regulatory changes impacted the industry?
Regulation has become tighter, especially in F&O (futures and options), but this strengthens risk discipline and improves transparency. While it tempers speculative activity in the short run, it sets the industry up for healthier, more sustainable growth. For brokers, it means diversifying revenue pools beyond pure turnover-linked streams.
Has Sebi’s true-to-label framework altered industry dynamics meaningfully?
Yes, it has. By removing slab-based rebates, Sebi has created greater transparency and levelled the playing field. Brokers can no longer rely on opaque incentives; they must now differentiate on value. This is pushing the industry towards advisory, technology, and well-defined customer journeys instead of just headline brokerage rates.
To what extent do trading costs matter as a differentiator in this competitive landscape?
Costs matter but they’re not the only driver. Traders focus on execution speed and pricing but most investors value trust, platform reliability, and research just as much. In a market where too many features can overwhelm, differentiation comes from clarity of user experience — giving customers confidence and simplicity rather than adding layers of complexity.
Will the low-cost brokerage model continue to dominate, or is there scope for premium offerings?
Both will coexist. Low-cost models will always appeal to price-sensitive traders. But an increasing number of investors value research-led portfolios, curated baskets, and advisory solutions. The shift is towards clarity and outcomes over price alone — from simply executing trades to enabling smarter, long-term investing.
With F&O participation rising, how should the industry and regulators ensure greater protection for small investors from derivatives-linked risks?
The rapid rise in retail F&O participation makes safeguards critical. The answer lies in transparent risk disclosures, stronger investor education, and disciplined oversight of leverage and margins. Industry players also have a role to play — embedding risk alerts and learning directly into platforms. The goal should be to balance innovation with responsible participation.
Given muted market returns over the past year, what behavioural shifts are you observing among clients? Which segments or products are seeing the most traction?
We are seeing investors become more selective and patient. Many are building core allocations through SIPs (systematic investment plans), ETFs (exchange-traded funds), and baskets rather than chasing short-term trades. Domestic flows remain resilient despite FPI (foreign portfolio investments) outflows, and Tier-II and Tier-III investors are coming in with greater discipline. This shift towards thoughtful, long-horizon investing is strengthening the market base.
Since the pandemic, how has the profile of new customers evolved?
The new Indian investor is younger, digital-first, and far more resilient. They’ve shown the confidence to stay invested through volatility and build portfolios systematically. Women investors and Tier-II/III cities are now mainstream contributors, supported by smoother onboarding and faster settlement cycles. What stands out is not just the growth in numbers but the maturity of behaviour. This new generation is approaching markets with patience and discipline — qualities that will anchor India’s capital markets in the decade ahead.
What advantages do bank-backed brokers enjoy? Specifically, how does Axis Securities stack up?
Bank-backed brokers have the edge of trust, seamless 3-in-1 integration, and scale. At Axis Securities, we’ve taken that foundation further with a dual-app strategy that separates investor and trader journeys. The Investor App (Axis Direct Investor) focuses on SIPs, ETFs, IPOs, and long-term portfolios, while the Traders App (Axis Direct Trader) and Pro EXE deliver advanced charting, options strategies, and execution speed. This clarity of design stands apart in a market where super apps try to do everything and could potentially leave customers overwhelmed. Add our research coverage, fintech partnerships, and AI-led tools, and we’re creating a differentiated, future-ready proposition.
