The quiet upheaval in Indian broking that's taking a bite out of revenues

New EU guidelines on paying separately for research have already changed the way markets function elsewhere in the world

The nearly 200-billion rupee Indian broking industry is going through a bit of turbulence. And its roots can be traced all the way to Europe.

The European Union has introduced new rules that are already taking a bite out of revenues and is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings is likely to mirror the tumult seen elsewhere in the world, according to experts. 

The European Union’s Markets in Financial Instruments Directive II (MiFID II) rules are designed to improve transparency and boost investor protection safeguards. The new regime