Archive · 13 Aug 2025
Indian Brokerages Lose Clients Amid Market Slowdown
In July, several popular online stock trading platforms in India, like Groww and Zerodha, saw a large decrease in users, with almost 6 lakh people leaving.
This continues a trend of declining users in the first half of the year.
Experts say this is because new rules from the SEBI made it less attractive to trade in risky investments.
Many investors are now choosing to invest in safer options like mutual funds.
However, some companies, like SBI Securities and Paytm Money, actually gained users during this time.
Top Indian discount brokerages like Groww, Zerodha, Angel One, and Upstox lost nearly 6 lakh active clients in July.
The overall stock market active user base in India fell 4% in July, reaching 45.96 million.
Analysts attribute the decline to a fall in futures and options (F&O) trading due to stricter SEBI rules.
Some investors are shifting towards managed investment products like mutual funds and PMS.
SBI Securities, Paytm Money, and ICICI Securities were among the firms that gained active clients in July.
- Who
- Discount brokerages like Groww, Zerodha, Angel One, and Upstox, and other firms such as SBI Securities and Paytm Money.
- What
- Discount brokerages lost active clients in July.
- When
- In July, extending a decline in the first half of 2025.
- Where
- India's stock market.
- Why
- Due to a sharp fall in futures and options (F&O) trading following stricter SEBI rules.
SEBI
Retail Investors
Regulatory Impact
SEBI
SEBI introduced stricter rules regarding Futures and Options (F&O) trading, including tighter margin requirements and heavier taxation.
Retail Investors
Retail investors decreased participation in F&O trading and moved toward managed investment products.
- Brokerage Losses (July)
- Nearly 6 lakh active clients
- Overall Market Decline (July)
- 4%
- Total Active Users (July)
- 45.96 million
- Blamed Cause
- Stricter SEBI Rules
- Gaining Brokerages
- SBI Securities, Paytm Money, ICICI Securities
