“The shift to a client-base-linked capital requirement risks overestimating actual risk, as client count does not necessarily translate into higher balance sheet exposure, especially in a framework where funds are already upstreamed,” said Ajay Kejriwal, executive director at Choice Equity Broking. He added that the norms could disproportionately impact efficient, low-cost brokers who operate at scale, “effectively penalising business models built on wider retail participation rather than higher risk-taking.”
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