How is Reliance money coping with the declining turnover on the Indian stock exchanges?
Equity trading is one of the three business verticals of Reliance Money. Since the other verticals of distribution and OTC (over-the-counter) business in money transfer, money changing and precious metal retailing also contribute significantly to the companys top-line, the company as a whole has not been too heavily impacted by the falling turnover in the stock markets. Also, Reliance Money has been focused on retail investors and not high net worth individuals (HNIs) and institutions. The volume has declined more sharply in the HNI and institutional segment as opposed to the retail segment. What is your view on the SEBI proposal to link client limits in derivative trading to their net worth? I think this is a step in the right direction. Stock exchanges world-wide are following this practice and it results in greater stability in stock markets. Though it can bar some of the smaller players from trading in derivatives, it should work out well in the long-term. The trading turnover is n
