Major Brokerages Face Client Losses in July 2025

India's largest stock broking companies—Groww, Zerodha, Angel One, and Upstox—reported a combined loss of nearly 6 lakh demat accounts in July 2025. This marks another month of significant attrition in the retail trading segment, continuing a downward trend seen over recent months.

Key Reason: Drop in F&O Participation

According to market analysts, the primary factor behind this decline is the steep fall in Futures and Options (F&O) trading activity. The Securities and Exchange Board of India (SEBI) introduced stricter regulations in 2024 aimed at curbing speculative trading and protecting retail investors. These rules increased margin requirements and introduced additional risk measures, discouraging high-frequency F&O traders.

Breakdown of Losses

While exact firm-wise figures vary, Groww and Zerodha—India’s top discount brokers—led the list in account closures, followed by Angel One and Upstox. Together, they accounted for over 90% of the net loss in active accounts during the month. Trivia cue: Zerodha, founded in 2010, was once the fastest-growing broker in India.

Impact on the Broking Industry

The client exodus is prompting brokerage firms to diversify beyond F&O into long-term investment products such as mutual funds, bonds, and ETFs. Experts believe the trend could reshape India's retail trading landscape in the coming year, shifting focus from speculative day trading to long-term wealth creation.

Fun Fact

Did you know? India now has over 15 crore demat accounts, but only about 20% remain consistently active for trading—most are used occasionally for IPO subscriptions or long-term holdings.

Source: Moneycontrol