Shares of seven brokerage firms tumbled 4% to 10% after the media reported that direct market access (DMA) system is being developed by the Securities and Exchange Board of India (SEBI).
Geojit Financial Services (down 9.69%), ICICI Securities (down 9.34%), IIFL Securities (down 6.43%), 5paisa Capital (down 5%), Emkay Global Financial Services (down 5%), Indiabulls Ventures (down 4.45%) and Motilal Oswal Financial Services (down 4.16%) tumbled.
Meanwhile, the S&P BSE Sensex lost 194.17 points or 0.51% to end at 37,934.73.
Shares of Bombay Stock Exchange (BSE) jumped 2.93% to Rs 507.75. Shares of Central Depository Services (India) surged 8.22% to Rs 349.65.
SEBI is reportedly considering allowing DMA to retail investors. Under the DMA, investors will be able to trade directly from the exchange instead of going through stockbrokers.
DMA could impact revenue of stock brokerage firms. However, stock exchanges may earn higher revenues in the form of brokerage and fee from demat holdings.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)