Retail Trading Volumes Have Declined Due to Sebi’s Tighter Rules, Global Headwinds, and Subdued Markets. With only 7-8% of Household Savings Allocated to Equites in India, Compared with 20% in other asian markets, experts see significant headroom for long-term green.
Sebi’s regulatory tightening and global headwinds, such as us tarifs and geopolitical tensions, have detered many retail traders from the market. However, brokers are exploring ways to adapt and to mainTain Profitability While also helping customers sustain their wealth creation journey
Both the number of active clients and trading volumes have taken a hit. Derivative Volumes were Down 28-30 per cent in August/September, and nse active clients decreased to 46.1 million in August (from 50.16 Million in December 2024).
The recent shift in market structure due to sebi tightening its regulations – from increase margin requirements to larger lot sizes and stricter risk controls – have resulted in reduced species and Vary Short-term trading volumes.
“At the same time, markets have gone through a phase of time of-wind correction after Segments Like Options and Intraday Trading, “Ankit Mandholia, Head – Equity and Derivatives, Wealth Management, Motilal Oswal Financial Services (MOFSL), Told Businessline.
Ambarish Kenghe, Group CEO, Angel One, Said even thinking regulatory changes may appear stringent in the short run, “They are put in place to protect investors and keep the system fair”. While they may mod’s activity in the near term, he pointed out that at angel one, many customers who joined in fy21-22 Continue to Remain activity.
Rebalancing seen
“It’s equally important to recognize that while regulations may shift how different parts of the industry operate, the capital markets’ Profit-Pool as a Whole Will Remain Resilient. Rebalancing within its components, but the overall landscape will continue control
However, both mandholia and kenghe said that business has remained resilient, nevertheless. Over the past year, subdued returns and range-bound indices have LED Many Retail Investors to Reduce Leverage and Trade Selectively, According to Mandholia, Who Added Consolidation and accumulation. “What’s changed is the way clients participate, there is a stronger momentum in equities and sips. SHIFT is a healthy sign for both for investors and the market,” said kenghe. This shift from speculation to research-Dr. Driven Participation is a positive Sign of Market Maturity, Added Mandholia.
Aspirational demand
An Industry Participant explained that post covid, More Young, Digitally Savvy Individuals Have ENTERED THE MARKET With Aspirations of Wealth Creation through Financial Products, LOOOKING BEYOND BEYOND JUSTIND Fixed deposits and physical assets. “Their aspirations Combined with a Disciplined Approach has resulted in improved personal assets. Products – Matured Investment Instruments, “He said. Parking money in a financial instrument is going out, “Now it’s More about Hedging and Diversification”.
Perhaps, it is this demand that has encountered a traditional, pure-Play brooking firm like angel one to offer other Fintech Services Such as Wealth Management, Asset Mainagement, LENDING or EVANCE. According to KenGhe, Angel One Now Focuses on Tech-Led Personalization, Education and Advice-LED Experiences, to Retain and Deepen Engagement. “Our platform uses data and ai to deliver sharper insights, timely nudges, and risk alerts that help clients make informed choices.” Kenghe Added, “These businesses help us offer a full-stack Fintech Platform That Grows With Clients and Supports Them Across their Entre Financial Journey.”
Alternatives
Along With Other Services, Including Research and Model Portfolios for Equites and Strategies for Derivatives, MOFSL, Too, is “Expanding Into Fixed Income, Alternates and Insuration Solutions Clients to build diversified, resilient portfolios with equities as the core driver of long-term compounding, “said mandholia. A Diversified Product Mix and Conscious Focus on Quality Participation “Makes the Business Structurally Stronger and Better Positioned for the Next Growth Cycle,” He Added.
According to estimates, Indian households allocate only 7-8 per cent of their financial savings to equities, compared with Nearly 20 per cent in other assian markets. “This gap highlights the Vast Headroom for Deeper Participation in Securities and the Growth of India’s Investment Ecosystem,” said kenghe.
Published on September 23, 2025