Comment on The race to Zero – Can the Indian brokerage industry survive?
commented on
23 Dec 2019, 03:40 PM
Yes, I understand the exchange regulations. I am saying there is a lending business opportunity here and I am wondering why brokers are not taking it. You are basically providing a secured, risk free loan and earning interest. There is no way I see that giving margin loans for a defined trade like a long can go against you if you collect the premium difference from the customer. And you control the execution software.
Probably there is some other restriction I am not aware of, maybe you are not allowed to give loans. Otherwise seems an ideal business to me.