Financial Brokerage Market in India 2023
Description
Financial Brokerage Market in India 2023
The brokerage industry in India is transitioning to a fee-based model, from the earlier transaction-based one. With this shift, brokers are now offering new services, including investment and wealth management advisory. There is also an increased focus on fund-based activities, such as margin funding. This is helping broker firms generate sustainable earnings. They are also expanding the range of products and services to strengthen client relationships.
The brokerage industry generated a revenue of INR 382.00 Bn in FY 2023, expanding at a compound annual growth rate (CAGR) of ~13.73% from FY 2019 to FY 2023. The industry gained popularity owing to a significant increase in trading activities. The financial brokerage market operates through different business verticals, such as full-service, discount, and hybrid brokerage. The full-service brokers segment accounted for the largest share of the brokerage market in FY 2022, followed by discount brokers and hybrid brokers. Some of the major players operating in the market are Angel Broking Limited, Geojit Financial Services Limited, ICICI Securities Limited, and Kotak Securities Limited.
Market segment insights:
In FY 2022, full-service brokers accounted for a significant share (46.23%) of the broking industry in India, followed by discount brokers (42.46%) and hybrid brokers (11.31%). The shift of trading platforms from offline to a mix of online and offline modes resulted in higher revenues for full-service brokers. The increase in the activity in equity markets since the beginning of the pandemic was driven by robust corporate earnings, favourable liquidity in both international and domestic markets, higher internet penetration, and retail participation.
Impact of COVID-19:
The decline in interest rates for FDs and uncertainties brought on by the pandemic sent investors looking for new avenues of investment that would offer better returns. The record-breaking performance of the equity market through 2020 and 2021 offered a viable alternative, leading to a significant surge in DEMAT accounts, especially of first-time investors.
In the post-COVID era, Technological advancements have brought smart features, such as e-KYC, order management systems, analytical and charting tools and much more, to ease the investment journey for retail traders. With today’s investor being immensely tech-savvy and expecting cutting-edge tech solutions for all their needs, brokers are increasingly investing in technology.
The brokerage industry in India is transitioning to a fee-based model, from the earlier transaction-based one. With this shift, brokers are now offering new services, including investment and wealth management advisory. There is also an increased focus on fund-based activities, such as margin funding. This is helping broker firms generate sustainable earnings. They are also expanding the range of products and services to strengthen client relationships.
The brokerage industry generated a revenue of INR 382.00 Bn in FY 2023, expanding at a compound annual growth rate (CAGR) of ~13.73% from FY 2019 to FY 2023. The industry gained popularity owing to a significant increase in trading activities. The financial brokerage market operates through different business verticals, such as full-service, discount, and hybrid brokerage. The full-service brokers segment accounted for the largest share of the brokerage market in FY 2022, followed by discount brokers and hybrid brokers. Some of the major players operating in the market are Angel Broking Limited, Geojit Financial Services Limited, ICICI Securities Limited, and Kotak Securities Limited.
Market segment insights:
In FY 2022, full-service brokers accounted for a significant share (46.23%) of the broking industry in India, followed by discount brokers (42.46%) and hybrid brokers (11.31%). The shift of trading platforms from offline to a mix of online and offline modes resulted in higher revenues for full-service brokers. The increase in the activity in equity markets since the beginning of the pandemic was driven by robust corporate earnings, favourable liquidity in both international and domestic markets, higher internet penetration, and retail participation.
Impact of COVID-19:
The decline in interest rates for FDs and uncertainties brought on by the pandemic sent investors looking for new avenues of investment that would offer better returns. The record-breaking performance of the equity market through 2020 and 2021 offered a viable alternative, leading to a significant surge in DEMAT accounts, especially of first-time investors.
In the post-COVID era, Technological advancements have brought smart features, such as e-KYC, order management systems, analytical and charting tools and much more, to ease the investment journey for retail traders. With today’s investor being immensely tech-savvy and expecting cutting-edge tech solutions for all their needs, brokers are increasingly investing in technology.
Table of Contents
89 Pages
- Chapter 1: Executive summary
- Chapter 2: Socio-economic indicators
- Chapter 3: Introduction
- 3.1. Market definition and structure
- Chapter 4: Market overview
- 4.1. Brokerage market in India – An overview
- 4.1.1. Brokerage market size in India (FY 2019 – FY 2023) ─ Based on active NSE clients
- 4.1.2. Market share of brokerage segments – Active NSE clients (FY 2022)
- 4.2. National Stock Exchange of India Limited (NSE) active clients
- 4.2.1. Active NSE clients (‘000) – Full-service brokerage
- 4.2.2. Active NSE clients (‘000) – Discount brokerage
- 4.2.3. Active NSE clients (‘000) – Hybrid brokerage
- 4.3. Top 10 brokers: Active NSE clients market shares as of December 2022
- 4.4. Broker-wise broking and commission revenue
- 4.5. Brokerage rates of major players for different products
- Chapter 5: Industry scenario
- 5.1. PE Ratio (price-earnings ratio) of broking industry from FY 2015 to FY 2022
- 5.2. Equity market turnover
- 5.3. Commodity market
- 5.4. Increasing share of internet-based trading in overall turnover for NSE segment
- 5.5. Retail ADTO trend for cash market and equity derivatives
- Chapter 6: State-wise no. of registered brokers
- 6.1. State-wise number of registered brokers
- Chapter 7: Impact of COVID-19
- 7.1. Effect of COVID-19 on the market
- Chapter 8: Market influencers
- 8.1. Market drivers
- 8.2. Market challenges
- Chapter 9: Market trends
- 9.1. Market trends
- Chapter 10: Competitive landscape
- 10.1. Angel Broking Limited
- Company information
- Business description
- Products/Services
- Key people
- Financial snapshot
- Key ratios
- Key financial performance indicators
- Key business segments
- Key geographical segments
- Note: Financial information has been covered only for public companies.
- 10.2. Geojit Financial Services Limited
- 10.3. ICICI Securities Limited
- 10.4. IIFL Finance Limited
- 10.5. Motilal Oswal Financial Services Limited
- 10.6. Reliance Capital Limited
- 10.7. SMC Global Securities Limited
- 10.8. HDFC Securities Limited
- 10.9. Kotak Securities Limited
- 10.10. Zerodha Broking Limited
- Chapter 11: Recent developments
- 11.1. Recent developments
- Chapter 12: Appendix
- 12.1. Research methodology
- 12.2. About Netscribes
- 12.3. Disclaimer
Pricing
Currency Rates
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