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Indian Stock Broking Scenario


Stock Brokers now and then.

Revolution by discount brokers.

The way forward.

Capital market is the centre or arrangement that provides facilities for

buying and selling of long term financial claims.

It is the market where transactions are made in long term securities such as stocks and bonds. The

participants of this market includes various financial institutions, mutual funds,

agents, brokers,dealers and other borrowers and lenders of long term

debt and equity capital. The initial emergence of stock markets in the world can be traced back over hundreds of years to when industrialization and innovation took hold in Europe. The rapid economic growth in the past one hundred years gave rise to the explosive development of stock markets. At the same time the enhancement of stock markets has played an important role in promoting the growth of the world economy. The modern market economy depends to a greater extent on a soundly operated stock market

Indian Broking Scenario now:

ICRA expects the broking industry revenue pool to increase to Rs. 180 billion to Rs. 190 billion in FY2018, registering a 15-20% y-o-y growth on the back of healthy volume growth coupled with rise in cash volumes. The volume growth is expected to be about 20-25% in FY2018, supported by positive investor sentiment and a benign capital market outlook. The IPO pipeline for FY2018 is expected to encourage retail participation and activity levels on the exchanges. Growing retail segment would lend support to the overall blended yields in light of competitive pressure.

With a large number of clients opting to conduct transactions online, the relevance of brick and mortar stores has partly reduced, That led to some of the best stock broking companies in India who compete with each other to give top level service to the customers.

Indian Broking Scenario Future:

Going forward, a further improvement in the profitability of brokers is expected in FY2018 driven by higher revenues due to uptick in the equity markets, higher interest income and control on expenses provided the brokers are able to maintain their credit costs in margin lending business.