Broker strength falls 40% on compliance burdens
Financial Express Chennai|December 23, 2024
Brokerage firms are facing a 40% decline in strength due to increasing compliance burdens, prompting regulatory action to tighten regulations for authorized persons (APs).

"BECOMING AN AP allows us to retain our clients while earning commissions on brokerage revenues," he said.

Chordia termed the arrangement a win-win, adding that "clients continue to get services from the same person as before while getting access to superior technology platforms and products".

However, the increasing number of APs has created a new problem for the industry as well as the markets regulator—there are more instances of APs engaging in unauthorised trades, promoting unregulated products and offering assured returns to lure clients.

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