Reality behind Money Making From Retail Trader in Stock Market
144 هزار بار بازدید -
11 ماه پیش
-
The stock market is an
The stock market is an industry where money begets more money. Everyone entering the stock market in India hopes to earn a profit and avoid losses.
Every month in India, around 35,000 to 40,000 demat accounts are opened, with each person hoping to profit from their investments. However, according to SEBI's report, only 11% of individuals trading in Futures and Options (F&O) actually make a profit, with an average annual profit of just Rs 3,400.
In this video, we will explore whether only retail traders are making money in the stock market or if there are other participants profiting as well.
There are many players involved in the stock market, such as depositories, exchanges, SEBI, Foreign Institutional Investors (FII), and listed companies, all of whom earn money from the stock market.
The first name that comes to mind is that of stockbrokers. When someone steps into the world of the stock market, the first step is usually opening a demat account with a Stockbroker in the stock market.
Stockbrokers primarily earn their income through brokerage charges, where they make money on every buy or sell trade, in addition to earning commissions from transaction charges with exchanges like NSE and BSE.
Now, let's discuss about the depositories that manage the demat accounts opened by Stockbrokers. (Central Depository Services Limited), which manages 8 crore demat accounts, and NSDL (National Securities Depository Limited), which manages 3 crore 27 lakh demat accounts and charges fees for selling shares, and this is their source of income.
In India, Depositories earn revenue primarily through fees charged for their services. They charge fees for account maintenance, converting physical securities into electronic form, and reversing the process. Additionally, they may earn interest income by investing funds held in unclaimed dividends and securities.
Almost everyone is familiar with the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), but these exchanges have also earned so much money from the stock market that it might come as a shock to you. In 2022, NSE made 12,765 crore rupees in earnings, while BSE earned 742 crore rupees. The majority of their revenue comes from transaction charges, which are applied to every trade, allowing these exchanges to accumulate significant wealth.
When brokers want to participate, they are required to pay application fees and registration fees, which can amount to as much as 5 lakh rupees. One of the most lucrative ways for these exchanges to generate income is by collecting fees from those who use their data feeds, often charging them substantial amounts. Additionally, they also charge from listed companies.
SEBI (Securities and Exchange Board of India) generated 1400 crore rupees in revenue last year through investments, advances, loans, and the interest applied to them. They also collect various types of application fees, ranging from a minimum of 1 lakh to as high as 1 crore rupees.
SEBI generates revenue primarily through regulatory fees and penalties imposed on stock market participants. It charges fees for registration, annual maintenance, and other services to entities like stock exchanges and brokers. SEBI also collected fines and penalties from individuals or organisations for violations of market regulations contributing to SEBI's income.
Now, let's turn our attention to the Government of India, which earns a significant amount of money from the stock market through charges like STT (Securities Transaction Tax), LTCG (Long-Term Capital Gains) charges, GST (Goods and Services Tax) charges, and state governments across India, which earn substantial revenue through Stamp Duty.
Lastly, let's not forget the clearing houses, which accumulate considerable earnings in the form of settlement charges. Clearing houses earn money mainly by charging fees and earning interest on special accounts. They charge brokerage firms and traders fees for clearing and settling trades, ensuring a secure and efficient marketplace. They may invest funds held in margin accounts, earning interest income. These revenue streams contribute to their profitability while maintaining market integrity.
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00:00 Intro
01:41 How Brokers Make a Profit Through Retail Traders
04:42 Profits Earned By Depositories
07:15 How NSE Make Big Profits
09:56 SEBI's Source of Income
Every month in India, around 35,000 to 40,000 demat accounts are opened, with each person hoping to profit from their investments. However, according to SEBI's report, only 11% of individuals trading in Futures and Options (F&O) actually make a profit, with an average annual profit of just Rs 3,400.
In this video, we will explore whether only retail traders are making money in the stock market or if there are other participants profiting as well.
There are many players involved in the stock market, such as depositories, exchanges, SEBI, Foreign Institutional Investors (FII), and listed companies, all of whom earn money from the stock market.
The first name that comes to mind is that of stockbrokers. When someone steps into the world of the stock market, the first step is usually opening a demat account with a Stockbroker in the stock market.
Stockbrokers primarily earn their income through brokerage charges, where they make money on every buy or sell trade, in addition to earning commissions from transaction charges with exchanges like NSE and BSE.
Now, let's discuss about the depositories that manage the demat accounts opened by Stockbrokers. (Central Depository Services Limited), which manages 8 crore demat accounts, and NSDL (National Securities Depository Limited), which manages 3 crore 27 lakh demat accounts and charges fees for selling shares, and this is their source of income.
In India, Depositories earn revenue primarily through fees charged for their services. They charge fees for account maintenance, converting physical securities into electronic form, and reversing the process. Additionally, they may earn interest income by investing funds held in unclaimed dividends and securities.
Almost everyone is familiar with the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), but these exchanges have also earned so much money from the stock market that it might come as a shock to you. In 2022, NSE made 12,765 crore rupees in earnings, while BSE earned 742 crore rupees. The majority of their revenue comes from transaction charges, which are applied to every trade, allowing these exchanges to accumulate significant wealth.
When brokers want to participate, they are required to pay application fees and registration fees, which can amount to as much as 5 lakh rupees. One of the most lucrative ways for these exchanges to generate income is by collecting fees from those who use their data feeds, often charging them substantial amounts. Additionally, they also charge from listed companies.
SEBI (Securities and Exchange Board of India) generated 1400 crore rupees in revenue last year through investments, advances, loans, and the interest applied to them. They also collect various types of application fees, ranging from a minimum of 1 lakh to as high as 1 crore rupees.
SEBI generates revenue primarily through regulatory fees and penalties imposed on stock market participants. It charges fees for registration, annual maintenance, and other services to entities like stock exchanges and brokers. SEBI also collected fines and penalties from individuals or organisations for violations of market regulations contributing to SEBI's income.
Now, let's turn our attention to the Government of India, which earns a significant amount of money from the stock market through charges like STT (Securities Transaction Tax), LTCG (Long-Term Capital Gains) charges, GST (Goods and Services Tax) charges, and state governments across India, which earn substantial revenue through Stamp Duty.
Lastly, let's not forget the clearing houses, which accumulate considerable earnings in the form of settlement charges. Clearing houses earn money mainly by charging fees and earning interest on special accounts. They charge brokerage firms and traders fees for clearing and settling trades, ensuring a secure and efficient marketplace. They may invest funds held in margin accounts, earning interest income. These revenue streams contribute to their profitability while maintaining market integrity.
Install our Stock Pathshala App:
https://bit.ly/3rg2h0h
Follow us on Social Media Handles:
Instagram - https://bit.ly/adb_insta
Twitter- https://bit.ly/adb_twt
LinkedIn- https://bit.ly/adb_linkdin
🎧 Listen to Our Podcast on Spotify:
https://spoti.fi/3JnpmSQ
🎥Subscribe to our Aseem Juneja Channel:
@aseemjuneja
🎥Subscribe to our Stock Market Learning Channel:
@stockpathshalaofficial
🎥Subscribe to our Vlog Channel
ADB Vlog - https://bit.ly/adb_vlog
✅Visit Our Website
https://www.adigitalblogger.com/
✅Visit our Hindi Website
https://hindi.adigitalblogger.com
00:00 Intro
01:41 How Brokers Make a Profit Through Retail Traders
04:42 Profits Earned By Depositories
07:15 How NSE Make Big Profits
09:56 SEBI's Source of Income
11 ماه پیش
در تاریخ 1402/06/16 منتشر شده
است.
144,060
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