India Financial Brokerage Market Report 2021: Industry


Dublin, May 12, 2021 (GLOBE NEWSWIRE) – The “India Financial Brokerage Market 2021” the report was added to from offer.

The brokerage market was valued at INR 135.0 billion in fiscal year 2016. In fiscal year 2020, it reached INR 210 billion against INR 195 billion in fiscal year 2019, with a rate of annual growth of approximately 7.69%.

Financial brokers provide financial advice to the business or individual. The brokerage industry in India is shifting from a transaction-based model to a paid model, offering services such as investment advice and wealth management. In addition to advisory services, the focus is on fund-based businesses, including equity lending and margin financing, which enables brokers to generate sustainable income. Financial brokers have developed their marketing ability to help clients achieve their goals. They offer a variety of products and services that strengthen their relationship with customers.

The industry has gained popularity, due to a significant increase in business activities. Financial brokerage firms have generated income from stocks, commodities and currencies. The financial brokerage market operates through different verticals including full service, discount and hybrid brokerage. The full-service brokerage segment accounted for the significant share of the brokerage market in fiscal 2020, followed by discount brokers and hybrids.

The main players operating in the market are Angel Broking Limited, Geojit Financial Services Limited, ICICI Securities Limited and Kotak Securities Limited.

Impact of COVID-19

The pandemic and the prolonged global lockdown have severely affected India’s financial market and liquidity position. A struggling economy in India coupled with the COVID-19 outbreak has led to apprehensions in which investing in financial markets has become a challenge for investors.

As India’s economy comes under massive pressure from the COVID-19 pandemic, trading volumes in the domestic capital market have started to recover after the lockdown was lifted. It hit a record high in July 2020.

Market segment overview

In FY2020, full-service brokers had the highest market share (~ 58%) of the entire brokerage industry, based on NSE’s active clients. The switch of the trading platform from offline mode to online-offline mode has increased the revenue generated by full-service brokers. However, in India, full-service brokers have experienced unstable growth with large companies losing considerable market share to discount brokers.

Main market growth drivers

  • Technological innovations are an important driver of the increasing participation of investors in the stock markets. The pandemic caused a major collapse in the stock market. Better financial awareness has led to a 130% growth in Demat account openings. Approximately 6.3 million accounts were opened in the first half of fiscal 2021. After demonetization, fintech companies have played an important role in the growth of the brokerage market, supported by an increase in smartphone users and high internet speed with low data costs. Retail investors use mobile trading because they mainly invest in convenient and user-friendly applications with secure platforms
  • In India, brokerage houses offer global investment services that allow their clients to own blue chip stocks in the United States. Investor demand for portfolio diversification is one of the main drivers that encourage companies to provide these services. Brokerage firms have entered into international partnerships, indicating a good demand for these services. In September 2020, Kuvera, an online platform for investing in Indian mutual funds, partnered with U.S. Securities and Exchange Commission listed investment adviser Vested Finance. This partnership allows investors to buy US stocks on its online platform.

Main obstacles to market growth

Lack of financial knowledge is a major reason for the underpenetration of the brokerage market. Many Indians are unfamiliar with stocks, stocks and mutual funds. They don’t know how to invest in them to get high returns compared to traditional investment tools. Most people are also ignorant of basic financial concepts like the reward (return) / variability (risk) ratio, asset allocation, and the benefits of diversification.

Covered companies

  • Angel Broking Limited
  • Geojit Financial Services Limited
  • ICICI Securities Limited
  • IIFL Finance Limited
  • Kotak Securities Limited
  • Motilal Oswal Financial Services Limited
  • Reliance Capital Limited
  • SMC Global Securities Limited
  • HDFC Securities Limited
  • Sharekhan Limited

Main topics covered:

Chapter 1: Executive summary

Chapter 2: Socio-economic indicators

Chapter 3: Introduction
3.1. Market definition and structure

Chapter 4: Market Overview
4.1. The Brokerage Industry in India – An Overview
4.2. Active clients of the National Stock Exchange of India Limited (NSE)
4.3. Active NSE customers and market share
4.4. Brokerage and commission income by broker
4.5. Peer comparison based on broad parameters
4.6. Top 10 Stock Brokers in India in September 2020 (Number of Accounts)
4.7. Brokerage rates from various large brokerage houses for all products

Chapter 5: Industry Scenario
5.1. Brokerage Industry in India – PE Ratio
5.2. Share of brokers’ equity in the NSE liquidity and derivatives market
5.3. Equity market turnover
5.4. Commodity market
5.5. Currency market
5.6. Growing share of internet trading in the overall turnover of the NSE segment
5.7. ADTO Retail Trend for Spot and Equity Derivatives

Chapter 6: Impact of COVID-19
6.1. Impact of COVID-19 on the market

Chapter 7: Market influencers
7.1. Market factors
7.2. Market challenges

Chapter 8: Market trends
8.1. Market trends

Chapter 9: Competitive Landscape
9.1. Angel Broking Limited
9.2. Geojit Financial Services Limited
9.3. ICICI Securities Limited
9.4. IIFL Finance Limited
9.5. Kotak Securities Limited
9.6. Motilal Oswal Financial Services Limited
9.7. Reliance Capital Limited
9.8. SMC Global Securities Limited
9.9. HDFC Securities Limited
9.10. Sharekhan Limited

Chapter 10: Recent Developments

Chapter 11: Appendix

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