The most important concerns are pending statutory consultations and the effects of a continuing market correction, which can lead to reduced trading volumes. | Photocredit:
Demat accounts have been withdrawn to 200 million in India; However, the penetration in investment funds (MFS) and shares remains lower compared to the potential of the economy, the latest report from Motilal Oswal on capital markets revealed.
The report noted that the active customers in the F&O segment also fell to 3.1 million in March 2024, because the number of weekly expiry date was reduced to one per stock market and the lotterrottes of Benchmark -Indices increased.
The pending results of consultation documents about the gross limits at entry level at index options, the death of cleaning up companies, transferring income from the treasury and expiry dates, since Tuesday/ Thursday are also important concerns.
The domestic brokerage said that a continuing market correction for exchanges and brokers is aimed at leading to a volume decrease.
In the meantime, Asset Management Companies (AMCS), Asset managers and RTAs are the least sensitive to stock market movements, as they earn at AUM.
Motilal analysts expect a gradual recovery of volume growth, with increased participation of the stores, to support the continuous growth trajectory of brokers and fairs. In addition, improved equity investment fund flows will promote a long -term investment perspective that is beneficial for AMCs. The best choices of Motilal in the sector are Angel One, BSE, HDFC AMC and Nuvama.
Published on May 21, 2025
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