The World may come a full circle..but it is nice to see the elimination of the small in the BFSI space.

The very early victims of the elimination program was when they eliminated the small sub broker. He had a role to play when there was a physical securities – shares had to be transferred physically…delivered to the broker, etc.

The next to be eliminated was the mid level broker – he could not attract talent, had no ability to deal with the painful regulator. It used to be (I no longer do it, but I guess it could not have changed much) ..so the mid level brokers closed down.

Then the small broker did not find it worthwhile so they closed down.

Then SEBI tried to push other reforms…..and crushed other small players.

Then the AMFI was formed. Amfi is a manufacturer’s club dominated by the big mutual funds. So the big fund houses now want the following:

– Minimum Net Worth (Rs. 10 crores is likely to be raised to Rs. 100 crores over say a 10 year period. Right now the push is to make it Rs. 20 crores.

– Will not be surprised if they say you should have minimum net worth of Rs. 25 crores to launch an ETF 🙂

– or say to distribute mutual funds you should have minimum net worth of RS. 20 lakhs…thus eliminating the small distributor…

the small investor can continue to  commit hara kiri