The Implications of SEBI & FMC Merger on Financial Services Sector: A Case of Daruwala Broking Pvt Ltd.
Srijan Daruwala (Srijan) was in a dilemma. He had to make a tough decision of cost-cutting at his brokerage firm, “Daruwala Brokign Pvt Ltd.” which involved downsizing of employees at its commodities trading department. He couldn’t blame Finance minister or SEBI for his predicament as merger of the Forward Market Commission (FMC) with the Securities and Exchange Board of India (SEBI) has been for a good reason which, he hoped, would bring the commodities market back on the growth trajectory.
Daruwala Broking Pvt Ltd.
Founded by Srijan in 2003, Ahmedabad-based Daruwala Broking Pvt Ltd. traded both in equity and commodity markets. The business was doing good with commission margin ranging from 0.10% to 0.50% from equity and various derivative instruments. Initially, the broking firm began trading at NMCE (National Multi-Commodity Exchange of India) and soon explored trading at MCX and NCDEX as well which together brought in lot of business in terms of volume as well as returns. Srijan developed many successful trading strategies for his clients and for his trading friends, and as a result, majority of trader of Mandis of Ahmedabad were his customers.................