stellant securities india ltd Management discussions

Industry Structure and Development:

Broking industry has seen lot of changes and evolvement in past decade led by disruptions from discount brokers, buoyancy in equity markets, digitalization and increased interest among various investor groups. Indian brokerage industry has been undergoing structural shift from percentage led business model to flat brokerage & subscription based model. Discount brokers continued to gain majority of incremental clientele as well as market volume.

The fierce competition faced by the broking industry due to unsustainable brokerage rates still continues and has aggravated further with brokerage firms introducing fixed brokerage irrespective of order value. As a result, the industry is under consolidation due to which smaller players are winding up their businesses or are being acquired by larger established broking houses.

Opportunities and Threats:

The opportunities still continue to lie in rendering value added services ancillary to stock broking. Your company is scouting for such opportunities.

Some of the threats to which the Company is exposed to include Regulatory Changes, Execution risk, competition from local and multinational players, Inflationary pressure, slowdown in policy making and reduction in household saving in financial products, Increasing competition from local and global players etc.

Internal Control Systems and their adequacy:

The Company is focused on its internal control systems and their adequacy by ensuring timely compliances of all statutory requirements as well as taking a strict view on client positions.

Outlook:

The Company maintains it stand that the outlook of the broking industry is not very rosy due to intense competition and introduction of fixed brokerage irrespective of order value.

Risk and Concerns:

The Company has laid down several measures for risk management to ensure timely collection of margins and their replenishment from time to time. Market volatility plays a major role in the variation in margins.

Material developments in Human Resources/Industrial Relations front including number of people employed:

There are no material developments in Human Resources / industrial relations front.

Discussion on financial performance with respect to operational performance

The financial performance of the Company for the financial year 2022-23 is described in the Directors Report under the head "Financial Result".