'Cash market activity will revive as confidence builds'

Stricter rules by the Securities and Exchange Board of India (Sebi) have curbed volumes and speculative activity but the broking industry’s “structural growth” will continue due to retail participation, financialisation of savings, and institutional flows, said Pranav Haridasan, managing director and chief executive officer of Axis Securities. Haridasan, in an interview with Samie Modak in Mumbai, said brokers must differentiate through advisory, technology, and customer experience rather than relying solely on pricing.

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Whatis your outlook for the broking industry? What kind of growth do you expect?

= The broking industry in India is in a structural growth phase. Rising household participation, deeper financialisation of savings, and steady institutional flows are building a long runway. Overthe next several years, topline growth in the mid-teens looks sustainable, with upside for brokers who can combine technology, trust, and advisory.

Inthe near term, the setup isalso improving. Direct tax cuts and GST rationalisation are putting more money in consumers’ hands, with further reforms and trade deals with the UK, EU, and potentially the US adding tailwinds. Postcorrection valuations and a base-effect on earnings point towards stronger momentum in the second half. Volatility may remain, but the structural direction is clearly upward.

‘Trading volumes have declined from their highs after Sebi’s tightening measures. Do you think thetrend has bottomed out?