Active user base of major stockbrokers drops by a million this year amid regulatory tightening

The total active user base of major Indian stockbroking platforms declined in the first half of this year, as tighter regulatory scrutiny around trading instruments such as futures and options (F&O) and market volatility dampened retail investor participation.

According to data from the National Stock Exchange (NSE), the combined active investor base of major platforms, including initial public offering (IPO)-bound Groww, Zerodha, Angel One, Dhan, Paytm Money, and PhonePe, fell to 29.5 million in June, down from 30.5 million in February.

Groww retained its lead in the stockbroking market with a 26.2% share in June, despite a dip in its active user base to 12.5 million from 13 million in February.


Zerodha held the second position with a 15.5% market share, with active users dropping to 7.5 million from 7.9 million over the same period. Angel One also saw a decline, with active users falling to 7.3 million from 7.6 million.

Other platforms such as Dhan, Paytm Money, and PhonePe reported similar declines, as increased market volatility and a more stringent regulatory environment continued to impact investor sentiment.

Despite the slowdown, these platforms have recorded growth in their active user bases on a year-on-year (YoY) basis.

Groww recently filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for a proposed IPO, through which it aims to raise between $700 million and $1 billion.