Comment on Is fractional share investing possible in India?

Yogesh commented on 25 Mar 2022, 12:30 PM

Nice article, summarizes well the key factor which makes it hard for offering fractional shares in India. In India as shares are held in actual customers names directly at depository it makes process transparent from holding perspective and prevents reconciliation and regulatory oversight overheads for brokers to provide the holding in their books to regulators and depositories.
Smallcase offering mentioned here seems attractive but it does not really track the index or sector/theme its being created on. It leaves the responsibility on the customer to closely track and rebalance which is not an easy task for novice investors. Frequent rebalances would lead to excessive expense in trading charges.
Also in my view comparison of number of Stocks in a price in US and India seems to be arbitrary. In my view using a comparable purchasing parity would have been more practical and insightful.

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