Thanks for the analysis. Overall it looks like this is 20% or so of current PAT runrate. It will be interesting to see how the industry responds to this asba implementation if any large broker like zerodha implements it, then everyone will have to do it to maintain feature parity. While this can lead to a small loss of income in 1 year, but imo leads to structural improvement in protection of market participants so imo is a good move.
Whether the loss will actually materialize also depends on how brokers treat the implementation. 3 options :
- Dont implement (lose market share to other brokers potentially)
- Implement & absorb costs to p&l (i believe will lead to flatlining of p&l for 1 year & then a growth on top of it subsequent year onwards)
- Implement & pass on costs to clients in form of higher brokerage
It will be interesting to see which of 3 options industry participants end up picking.
Disclaimer: invested in angel, watching closely
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