Relianc
e Money is even offering prepaid cards ranging from Rs. 500 to Rs.2,500. As an example, an investor with a Rs. 500 card can trade up to Rs.1 million for delivery based trades and 9 million for non-delivery based trades. The industry players perceive it as a move that has the power to even distort the dynamics of the markets. “Since the brokerage industry is also consolidating, the move by Reliance Money may force small brokerage house to shut their shops,” admits a head of brokerage house on the condition of anonymity. At present, Indiabulls is the largest retail brokerage in the country controlling 15% of the retail market and 5.5% of the overall market. Would such massive new competition from Reliance Money affect their shares? Gagan Banga, Executive Director, Indiabulls, shared his views with us, “The stock-broking industry has been consolidating and it will further consolidate. The top 5 today control about 30% of the market, I see this crossing 40% by 2009!” Clearly, Reliance has always been known for predatory pricing; the entry of Reliance Communications in the telecom is a testimony to the above mentioned fact.
e Money is even offering prepaid cards ranging from Rs. 500 to Rs.2,500. As an example, an investor with a Rs. 500 card can trade up to Rs.1 million for delivery based trades and 9 million for non-delivery based trades. The industry players perceive it as a move that has the power to even distort the dynamics of the markets. “Since the brokerage industry is also consolidating, the move by Reliance Money may force small brokerage house to shut their shops,” admits a head of brokerage house on the condition of anonymity. At present, Indiabulls is the largest retail brokerage in the country controlling 15% of the retail market and 5.5% of the overall market. Would such massive new competition from Reliance Money affect their shares? Gagan Banga, Executive Director, Indiabulls, shared his views with us, “The stock-broking industry has been consolidating and it will further consolidate. The top 5 today control about 30% of the market, I see this crossing 40% by 2009!” Clearly, Reliance has always been known for predatory pricing; the entry of Reliance Communications in the telecom is a testimony to the above mentioned fact.