Regulations in 2018-19

1. Regulatory changes like disallowing payment of upfront commission to MF

distributors which impacted their client acquisition pace and distribution revenue.
2. (Pg 97) It focused on creating an investor friendly environment mainly by
concentrating on mutual fund penetration ‘beyond the top 30’ (B30) cities by offering
additional total expense ratio (TER), ensuring uniformity by rationalizing and
standardizing the attributes of the mutual fund schemes, change in the pay-out
framework to a trail based commission and the rationalization of TER based on size
of the scheme effective beginning FY2020.
3.
4.

How they make money (2018-19)

1. A major bulk of investments come in Indian Capital Markets come through FII and
DII.
2. Through Portfolio Management Services (PMS) which has seen a rise in number of
clients.
3. Through commission on IPOs
4. Through brokerage services that it offers to retail customers for trading equities,
equity derivatives, currency derivatives, ETFs and overseas securities.
5. Through commission earned from distribution of financial products like mutual funds,
life and general insurance, corporate fixed deposits, loans, tax services and pension
products.
6. Offers services like Investment Banking and Investment Advisory Services
7. Provides solutions like block deals to financial institutions.

How they tackled lower brokerage fees

1. This was possible because business reduced in the low-yield intraday segment but
continued to do well in the high yield cash delivery segment.
2. Its client base increased significantly and resulted in higher retail participation which
compensated for lower brokerage fees.
3. They focus on delivering highly personalised and relevant products and solutions to
their customers.

How they make money (2019)

1. Through ICICI Direct Prime (revenue from it was 196 million)
2.