Bank-backed broking houses expect client influx after Karvy fiasco

Trust deficit after Karvy fiasco and access to margin facility to drive shift of investors

Bank-backed broking houses are expecting to corner a significant chunk of market share as investors, driven by safety concerns for their investments after the Karvy episode, shift their accounts from smaller broking houses. 

At present, the top-four bank-backed brokerages account for one-fourth (a 25 per cent market share) of active clients.

“Over the last month, we have gained in terms of accounts. There are customers who are moving their accounts to us. Also, fresh accounts are being opened,” said Dhiraj Relli, managing director and chief executive officer of HDFC Securities. 

“As a result of the Karvy fallout, investors are looking for broking houses