Brokers exit cash segment, numbers drop by a quarter over 12-month period

High regulatory expectations and advent of discount broking have made old-style brokerage businesses unviable

More than 700 brokers have exited the cash segment since May 2018, shows data by the Securities and Exchange Board of India (Sebi). The markets regulator provides information on regular brokerage registrations in the cash segment, as well as on corporate brokers with registrations for the same. 

The number of registered cash market brokers declined from 3,028 in May 2018 to 2,253 in May 2019. Similarly, corporate brokers saw a decline from 2,641 to 1,954 over the same period. The equity derivatives segment saw a smaller decline, from 2,569 to 2,429 — a decline of 5.4 per cent.

Cash segment brokers saw