BSE: Entire industry moving towards zero broking model: Ashishkumar Chauhan, BSE

New Delhi: While the zero brokerage model is catching up fast in the retail equity broking industry, Ashishkumar Chauhan, head of one of the leading stock exchanges raised concerns on the sustainability of earnings for the industry.

“Entire broking is going towards zero brokerage model. The margin has collapsed close to zero in terms of trading,” Ashishkumar Chauhan, managing director and CEO of BSE on Saturday said addressing the audience at ANMI’s International Convention in Delhi.

“You are running so much but earning nothing,” Chauhan said.

Zerodha, the discount broking firm is the leading brokerage firm in the industry.

In a bid to grab a larger share of rapidly growing discount-broking market for securities, retail-focused stockbroking firms have introduced similar products in recent times to raise their game.

Last year, brokerages such as Axis Direct and Angel Broking came up with discount broking offerings, alongside their existing products in an attempt to lure customers away from established discount brokers. They are also offering research services bundled with these products.

PayTM Money, the investment and wealth management arm of mobile payment platform Paytm, is also launching its discount broking platform soon.

Separately, Chauhan said the currency trading segment and bond trading segments were doing well on BSE.

He added that BSE was moving towards higher-margin verticals such as bonds and MSMEs (medium, small and micro enterprises).