This is the big challenge before Indian brokerage industry, according to Zerodha's Nithin Kamath
Updated : October 05, 2019 06:24 PM IST
Titled "The race to Zero — Can the Indian brokerage industry survive?", the post discusses challenges in front of the industry after a new regulation that doesn't allow brokerage firms to pledge client securities to an NBFC or any third party went live in India from October 1st.
Margin funding allows clients to buy stocks for more money than what's in their account, and charge for the shortfall.
Under the changed regime, brokerage firms can only lend to the extent of their own capital.