Brands
Discover
Events
Newsletter
More

Follow Us

twitterfacebookinstagramyoutube
ADVERTISEMENT
Advertise with us

Eureka Group buys four stock broking firms, in talks with 2-3 entities

Any broker with less than 5,000-7,000 active clients will find their business unviable, he said.

Eureka Group buys four stock broking firms, in talks with 2-3 entities

Saturday July 01, 2023 , 2 min Read

Financial services company Eureka Group has acquired four stock broking firms and is in talks with two-three such entities as the brokerage industry is experiencing "consolidation" with rising compliance costs and shrinking margins, an official said.

Any broker with less than 5,000-7,000 active clients will find their business unviable, he said.

"The brokerage industry is facing a number of challenges, including shrinking margins and rising compliance costs. These challenges are making it difficult for discount brokers and small ones to survive. Consolidation is taking place. Already four brokers have merged with us and another 2-3 brokers are in the pipeline," Eureka Group Executive Director Rakesh Somani told PTI.

Also Read
Dream 11 to replace BYJU'S as Indian team's principal jersey sponsor

Smaller firms are often unable to generate enough revenue to cover their costs, while large brokers have the resources to comply with regulations and invest in technology, he said.

He was speaking on the sidelines of Financial Conclave 2023 on Friday evening, where Kotak AMC MD and Group President Nilesh Shah, NSE Chief Business Development Officer Sriram Krishnan, NSDL Executive VP Prasant Vagal, Kedia Securities promoter Vijay Kedi were present.

"Things have been really tough for firms which have failed to invest heavily in technology and are not able to bring in other financial services under a single roof to acquire clients," a promoter of a broking firm who merged with Eureka said on condition of anonymity.


Edited by Akanksha Sarma