How Indian Stock Broking Industry has changed in year 2012?

Published on Sunday, December 23, 2012 by Chittorgarh.com Team | Modified on Monday, September 17, 2018

With the participation and turnover in India Equity Market is growing strongly in recent years, the Indian Stock Broking Industry is going through a transformation phase.

In last one year the stock broker industry in India has seen many significant changes.

1. The new generation of discount brokers has changed the face of the brokerage industry.

   Thousands of traders and investors moved to the discount brokers in last one year. The high performance trading platforms, good customer service and off course saving of over 60% on brokerage made them try these services.

   Unlike traditional broker who spend lot of money on advertising their services, the discount brokers has grown through word-of-mouth.

   The discount brokers are the future of the brokerage industry and if you have not tried them yet, I strongly suggest you to choose one of them and try. I guarantee you that you will not regret your decision.

   You can compare them and find the best suited broker for yourself at Chittorgarh.com or simply contact us and we will help you choosing one.

2. MCX-SX, India's new stock exchange, got permission to trade in equity. This will give stiff competition to existing players like BSE and NSE in coming years. This is in the benefit of stock traders and investors as this will eventually bring down the cost of trading.

3. Announcement of BSE SME and NSE SME exchanges allowing small and medium enterprises to raise funds from capital market. 13 SME companies listed on the SME platform in the first year itself and many more are in line.

4. SEBI introduced 'No-Frill Demat Account' for small investors, which significantly reduces the AMC charged by the demat account providers. You don't have to pay the AMC, which generally ranges from Rs 400 to Rs 800 a year, if you hold securities with the value of lesser then Rs 50,000. AMC is limited to Rs 100 if the portfolio value reaches up to Rs 2 lakhs. This will bring larger retail participation in the stock market.

5. SEBI has done many IPO reforms this year. One key decision was the allotment of a minimum number of shares to retail investors to increase the participation in the market. Wider acceptance of ASBA by investors this year has helped registrars to reduce the IPO share application processing time significantly.

Unlike many other large economies around the world, the participation in stock market by retail investors in India is the lowest. The focus of the Government of India this year was to build policies to encourage more retail investors to choose equity as a long term investment option. These policies and reforms will start showing results in coming years and the investors and broking industry will gain the most from this.