Europe's new market rules to pinch Rs 200-billion Indian broking industry

New norms designed to improve transparency, boost investor protection

The nearly Rs 200-billion Indian broking industry is feeling the heat and its roots can be traced all the way to Europe.

The European Union (EU) has introduced new rules, which are already taking a bite into the revenues. This, in turn, is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings for the domestic market is likely to mirror the tumult that has been seen across the world, according to experts.

EU’s Markets in Financial Instruments Directive-II (MiFI-II) rules are designed to improve transparency and boost investor protection safeguards.

The new