Access, education, personalisation to shape retail investing: Religare CEO

After an initial dip in Q3 and Q4 of FY25, we can now see volumes and client activity are starting to stabilise, says Gurpreet Sidana, chief executive officer at Religare Broking

The surge in demat accounts to 167 million driven by Tier-2 and Tier-3 cities reflects a structural shift in how India saves and invests, says Gurpreet Sidana, chief executive officer at Religare Broking in an email interview with Devanshu Singla. Edited excerpts:

How are domestic market dynamics evolving in the backdrop of various policy-related developments? 

 

We believe the 50 per cent US tariff is more of a negotiation tactic than a reality and should eventually settle closer to 15–25 per cent. In 2025, FII outflows of ₹2 trillion are as much about stretched valuations as they are about global shocks. The real shift is domestic, with DIIs adding nearly ₹4.9 trillion. That’s the bigger story: India is becoming less dependent on foreign flows and increasingly powered by its own liquidity and reforms.

 

 

Amid these US tariff tensions and broader global uncertainties, we see the Indian government shifting its focus decisively toward domestic consumption growth, supported by both process and structural reforms.

What are your sectoral preferences?

 

We see strong prospects for financials, insurance, autos, and consumer durables. Near-term laggards could be information technology (IT) and pharma, given their close ties to global demand. Overall, India’s markets are showing greater resilience than many anticipate, driven by structural reforms and homegrown capital.

 

Recently, SEBI proposed to ease the broad-basing requirement for AMCs. How do you view the potential impact of these changes on the broking and investment advisory ecosystem?

 

SEBI’s move opens the door for AMCs to design more specialised and thematic products, attracting long-term pools of capital such as family offices and global institutions. For brokers and advisors, this creates opportunities to engage clients with a wider range of offerings and more customised portfolios. The change should drive greater innovation, competition and investor participation - strengthening both advisory services and capital market depth.  ALSO READ | Tariff worries? Allocate 40-50% to Sensex or Nifty basket: G Chokkalingam

How have Sebi's tightening measures and the decline in F&O trading volumes impacted Religare’s revenue streams and profit margins?

  This has naturally moderated trading activity across the industry. While this meant lower leverage and reduced churn in the short term, it is also strengthening market discipline and encouraging more sustainable participation. We saw an 11 per cent dip in yields due to increased lot size, which also resulted in reduced per unit brokerage.

 

After an initial dip in Q3 and Q4 of FY25, we can now see volumes and client activity are starting to stabilise, aided by re-pricing, marketing efforts, supportive markets and renewed youth participation. The way forward for us is clear: balance trading with long-term investing, while driving adoption of innovative products and solutions. This approach ensures healthy revenue streams and resilient margins, even in a more regulated environment.

India now has over 167 million demat accounts, with rising activity from Tier-2 and Tier-3 cities. What’s driving this surge, and how is the broking industry adapting to serve this expanding and diverse investor base?

 

The surge to 167 million demat accounts, driven by Tier-2 and Tier-3 cities, reflects a structural shift in how India saves and invests. Easier digital access, UPI-driven payments, and simplified KYC have eased entry barriers, while rising financial literacy and social media awareness are pulling first-time investors into equities and mutual funds. For brokers, the opportunity lies in adapting beyond low-cost execution — building mobile-first platforms, offering regional language content and delivering simple, goal-based products alongside value-added services like research, thematic portfolios and AI-driven advisory. The next phase of retail investing in India will be shaped by this blend of access, education, and personalisation.

What impact could the potential GST reforms have on business sentiment, consumption, and sector-specific performance, especially for MSMEs and consumer-facing industries?

 

GST reforms can be a catalyst for growth across the board. For MSMEs, simpler compliance and faster input tax credit refunds would ease cash flows and reduce complexity, helping many move into the formal economy. On the consumption side, rationalising rates on essentials, apparel, footwear, and entry-level vehicles could directly boost affordability and demand, especially in rural and semi-urban markets.

 

Sector-wise, consumer-facing industries, including FMCG, retail, QSRs, autos, and durables, would benefit from stronger demand momentum. Logistics and e-commerce would see efficiency gains through uniformity in state-wise compliance.

 

Importantly, scrapping the tax on insurance policies or at least a calibrated reduction to 5 per cent would make insurance more affordable, potentially expanding penetration and boosting long-term sector growth. Overall, GST 2.0 can improve business sentiment, fuel consumption, and strengthen long-term growth.