By Lav Chaturvedi
In the financial year 2020-21, the nine-month period between July 2020 and March 2021 (9MFY21), was the most challenging time for almost every industry. The prolonged phase of lockdown that was enforced to contain the coronavirus pandemic came as a serious setback for them. Ironically, for the broking industry, this period was marked by unprecedented gains and unparalleled investor enthusiasm.
After facing the initial headwinds, when the lockdown was announced in March 2020 and till the broking industry adjusted to remote and digital mode of operation, several positive factors emerged, which gave the industry new momentum.
Record growth in 2020
First of all, governments globally announced huge stimulus packages to stem the Covid-induced slowdown, with total fiscal stimulus exceeding $12 trillion, which was almost four-times the stimulus offered during the Global Financial Crisis of 2008.
Will a halt to bull run end brokers’ honeymoon with retail investors?
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Getty Images NSDL crossed the 2 crore mark in demat accounts, riding on the surge in retail investor participation since last March.
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NEW DELHI: No matter whether you made money in the breakneck stocks rally in last one year or not, brokers definitely got richer at a much faster clip, thanks to a surge in trading volume. But that period of stupendous growth might be getting over.
CDSL, which provides depository services, added over 1 crore investors in the last one year. It now has 3 crore demat accounts. Its rival NSDL crossed the 2 crore mark in demat accounts, riding on the surge in retail investor participation since last March.
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SEBI Orders Attachment Of Bank, Demat Accounts Of Rhine And Raavi Credits & Holdings, 3 Others
The action has been taken against them after the entities failed to pay the fine imposed on them during May-August 2019 for violating securities market norms in the matter of illiquid stock options.
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Markets regulator Sebi has ordered attachment of bank as well as demat accounts of Rhine and Raavi Credits & Holdings and three individuals to recover Rs 1.21 crore.
The recovery proceedings have been initiated against the entities after they failed to pay fine totalling Rs 1 crore imposed on them in March 2018. The fine was levied as they failed to return investors money as directed by Sebi.