Hi Guys let me explain my previous post in detail.

In USA there is 0 brokerage system this is not possible in INDIA because SEBI has closed all doers from broker to earn money after the karvy fraud.
I would like to first give a brief what SEBI has done till now and then give my view what they are planning to.

1. Earlier broker used to have pledge stock in their account which they used to pledge with NBFC. The money they used to get from NBFC was given to client. Interest difference was their profit. Now they cannot pledge with NBFC and the shares are in depositary so now it is brokers money give to client.

2. Idle balance in trading account was earning interest from broke. Now there is quarterly settlement, client can even choose monthly settlement.This source of revenue also gone.

3. In india broker has to send all orders to exchange where as in USA it can be sent to HFT (high frequency traders) and these HFT offer rebate to brokers for sharing this data(order flow).This is not allowed in india so again this source of revenue also gone.

4. Because of CDSL and NSDL brokers cannot do security lending. In US all securities are held in their brokers name.

5. SEBI introduced the new margin rule which was again a big dent to these brokerage companies.

6. SEBI was preparing brokers for ASBA by introducing quarterly settlement. Once ASBA gets introduced the brokers are just messenger who are sharing clients trade real time with exchange. Again ASBA will be a big blow.

The biggest asset of a brokerage firm is CLIENT DATA and all the data of real time order both of this is being shared with SEBI, Exchanges and depositary. SEBI is building its own ecosystem. They have choked all the broker from all sides and the day they come with T settlement and ASBA that is the end of discount broker.
SEBI can start a direct trading platform free of cost where there is involvement of BANK,SEBI,EXCHANGE,DEPOSITARY. Where is the need of brokers? This is my first case where I see discount broker being finished.

CASE 2- Even If SEBI does not introduce direct trading for sure ASBA is coming. In this case there is going to be panic among brokers and only those brokerage firm will survive who have maximum active client. Every broker is going to give there level best to get more clients. So what is the best way to attract clients? decrease brokerage. In this case out of 500+ active brokerage house only 1 or 2 will survive.

CASE 3- Suppose ASBA is not introduced. Now if you see in Kolkata it is easier to open a brokerage firm than a pani puri stall. There is extremely low barrier to entry. For sure in the next 5yrs there is a new company going to come with a sustainable 0 brokerage business model and disrupt this industry. Who thought 10yrs back that discount brokers will rule?

Overall my view is why should we enter this industry where there is no MOAT and the probability of technological disruption is high. ANGEL can double from here but the day SEBI comes with direct trading this stock is going to crash 50%. So my point that there is extremely high risk in this industry and lot of uncertainty. Exchanges have smartly used brokerage firms from a log time to build their ecosystem and now they are slowly reducing the need of them

Here is the link where NITHIN KAMATH shares his view on 0 brokerage.

I just came across another forum a complete copy of value picker forum. Nithin kamath is very much active here and keep sharing this view. I would also advice every one to go through is post there and ask him his view on ASBA.

Press release from KMEW on new vessel Acquisition

This is a celebrated documentary on the 2008 Global Financial Crisis.

Inside Job

I am sure many of you who have been around for a decade or more in the markets must have seen it, but for younger folks who have not seen it, this is a must-watch movie, well worth your time.

I watched the movie for a second time after many years this weekend and enjoyed it thoroughly. Lots of learnings from studying history.

Increasing my allocation in GPIL by re-investing dividend.
12% increase in pellet capacity will offset the fall in price of pellets to a great extent.
Price of semi-steel like sponge iron, billets etc is still at pre-duty level.
Huge growth in coming years because of 4x increase in mining capacity over next 6-7 years.

They both are owned by ministry of power?