Share India Securities Ltd

NSE:SHAREINDIA

Ladies and gentlemen, good day, and welcome to the Share India Securities Limited Conference Call. [Operator Instructions] Please note that this call is being recorded. I now hand the conference over to Mr. Amit Sharma from Adfactors PR.

Thank you, Yashashri. Good afternoon, everyone. On behalf of the entire management, I thank all the participants present on the call and wish you a very warm welcome to our Q3 and 9M FY '25 earnings conference call.

To guide us through the results today, we have with us the senior management team of Share India Securities Limited, represented by Mr. Kamlesh Shah, Managing Director; Mr. Sachin Gupta, CEO and Whole-Time Director; Mr. Rajesh Gupta, Director; and Mr. Abhinav Gupta, President, Capital Markets.

Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature. The actual results may vary as they are dependent on several external factors. We will commence the call with opening brief by Mr. Kamlesh Shah, Managing Director; followed by the business highlights from Mr. Sachin Gupta, CEO and Whole-Time Director. After this, we will open the forum for the Q&A.

With that, I would now hand over the call to Mr. Shah to share his comments. Over to you, sir. Thank you.

Thank you, Amit jee. Good evening, everyone. Quarter 3 financial year 2025 was a difficult quarter for the company and the industry. Still, we could perform in line with our peers. The rollout of the first phase of the measures to strengthen equity derivative framework, standardizing exchange charges regardless of turnover, et cetera. This had sizable impact on the turnover of the exchange. Also due to low liquidity, we witnessed unwarranted spikes in the indices, which has affected our turnover.

Any regulatory changes often leads to temporary disruption and the volume correction as we have witnessed during quarter 3 financial year 2025. But we are optimistic that the same will be observed in the near future. We are monitoring all the possible impact of these changes on our business verticals and can assure you that our investment in product innovation, technology, meets with our expectations.

Coming to quarter 3 financial year 2025. Consolidated performance. During quarter 3, company has consolidated revenue of INR 342 crores, compared to INR 453 crores, showing a decline of 24% on a quarter-on-quarter basis. Consolidated PAT of INR 82 crores, showing a decline of 34% on a quarter-on-quarter basis. The consolidated EPS comes out to INR 3.66 per share of INR 2 paid up.

Coming to stand-alone performance. During the quarter 3, the company has stand-alone revenue of INR 259 crores compared to INR 366 crores, showing a decline of 29% on quarter-on-quarter basis. Stand-alone profit after tax of INR 60 crores, showing a decline of 39% on quarter-on-quarter basis. The earnings per share on a stand-alone basis works out to INR 2.67 per share. The company is diversifying across the segment and the vertical.

Recently, we completed our investment in Metropolitan Stock Exchange of India at INR 2 per share. We are holding approximately 5% of the equity of the exchange. This is a strategic investment. We see a lot of synergy in the operations and a lot of business opportunity will open up.

This investment will increase our market reach and paves the way for Share India to be on the forefront of this development in India derivative market. The Board of company has approved to venture into wealth management and we have already applied for PMS registration, and we are in process of creating an AIF.

Expanding in the wealth verticals will position the company as a comprehensive financial service provider and boost stakeholders' credibility. Merchant Banking is also doing great. I'm happy to share with you that the Share India Capital Services, our wholly owned subsidiary has signed an MOU with COE for aspiring SMEs, to support SME by providing strategic guidance, adding assets to external equity and overcoming funding challenges via SME IPO listing.

We have completed 16 SME IPOs, covering almost 11 sectors. Share India Fincap, our wholly owned subsidiary for NBFC operation has successfully completed its first nonconvertible debenture issue. As of 9-month financial year 2025, we have a loan book of INR 253 crores and net worth of more than INR 120 crores. We are serving our clients with 75 branches. Our recently launched institutional desk and MTF are also doing extremely well. We are servicing approximately 115 institutional clients and the MTF book for 9 months ending December stands at INR 361 crores.

uTrade Algos, our dream project is steadily progressing towards aligning our vision of empowering retail with the algo trading. Also, Silverleaf will provide a great asset for HFT and attracting FPI, HNI, et cetera.

To conclude, I would like to reiterate that the company is fully committed to the vision of the company and going ahead with focusing on retail expansion, algo trading penetration, international operations and diversification. I thank you all for joining this call.

Now I hand over the call to Sachin for detailed analysis of the performance. Thank you.

Thank you very much, Kamlesh sir, and good afternoon, everyone, and thanks for joining for our Q3 con call. Sir, you have explained everything in very detail. As we all know, this quarter 3 was mix of challenges and the new initiatives by the company. New regulations that come up from the regulator side have been implemented in December. So we can see that clearly see the volumes, it has impacted the volumes on the downside. And industry is still trying to cope up with the new regulations. And once investors and all the participants get adjusted to the new regulation, we believe that volumes again will pick up and things will come to the numbers side.

We can see what we observe and we analyze. We believe that we can see consolidation for 1 or 2 quarters. But at Share India level, we are very positive that we will rebound very strongly after the brief consolidation. And in the quarter 2 call, on the SEBI regulations, we already gave the guidance that it will take 1 or 2 quarters maybe to get adapted to the new regulations. [ Once ] all these regulations are getting adopted, then volumes will go up and margins will be better, and this will again be normal.

Still some regulations are in pipeline, which we see in a month of Feb and maybe after 2 months. So we can clearly see as Kamlesh sir explained, the focus in the last 1 or 2 years, focus is continuously shifting from core crop to customer-facing products. We can see the introduction of MTF. We can see the introduction of institutional debt as we are already serving 150 institutions. We can see that we apply for -- we got the Board approval for PMS license. We are planning to launch AIF.

So all these products are in line with the customers' demand, and we are clearly focusing on the customer type products. We also bought the Board approval for a wealth company, which is called Share India Wealth Multiplier. What we see that like retail is trading heavily directly into the equities and derivatives. In coming next few years, we can see the wealth division can pick up very strongly. And especially the new generation, they are looking for some more innovative products rather than only focusing on SIP. SIP is one product which everyone is doing but young generation between, you can say, 25 to 35 bracket, they are looking for the more innovative products.

And slowly and gradually, distribution products will be much in demand and Share India is planning to launch the third-party distribution product through their wealth management company in next financial year.

Also, along with all these things, we are also focusing on the strategic investments. So MSCI as a is a strategic investment from our side, where MSCI has raised INR 240-odd crores and Share India is holding around 5% of the total MSCI company. We believe that after the SEBI regulator, there is scope for 1 more exchange to get established. And MSCI in coming years, we can see that they will launch their derivative product and they will launch their equity segment.

So we can see that Share India will also get benefited by the growth of MSCI. So NBFC, as well, I will just share some numbers. So ADTO has dropped from INR 10,400 from quarter 2 to INR 8,200 crores per day in quarter 3. We have added 29 new APs and some branches from quarter 2 to quarter 3. We have added active clients around [ 8,000 to 10,000 ] from quarter 2 to quarter 3. Board has also given the approval for the dividend of [ INR 0.2 ].

Mr. Gupta, are you on your handset mode right now because your voice is breaking a little.

I'm on the handset mode now.

This is clear, sir. Please go ahead.

So Board has also given the approval for dividend of INR 0.2. NPL book has gone up from INR 260 crores to INR 360 crores from quarter 2 to quarter 3. NBFC loan book has gone up from INR 195 crores to INR 250 crores from quarter 2 to quarter 3. So these are some bright points where we are seeing that some -- our subsidiaries are doing really great. And we believe that in next 1 or 2 quarters, things will also stabilize from the regulatory point of view. And our company will be strongly back on the growth objective, which earlier we were seeing. That's all from my side.

[Operator Instructions] Our first question from the line of Ravi Shah, an individual investor.

My question is related to the investment -- strategic investment. So right now, the existing player, both BFC and NFC are much more competitive. So where do we see our investment and the growth trajectory for the Metropolitan Stock Exchange. Can you put some colors on this?

Sachin, would you like to...

I will start, if you want to add anything that you can add later on. So sir, have you asked -- what I understood you are asking primarily, what is the growth trajectory that MSCI is seeing? And what are their plans?

So I can only tell you that, yes, there are some challenges on the [ tech ] side. And overall because this exchange was primarily into currency before this, but they have their own index, [ SX40 ], which they launched around a decade ago. Now because they have already got the SEBI note for the launch of the weekly contract. But yes, this is on the development of the cash segment also.

So they have already tied up with some good vendor for the tech support, which I cannot disclose right now because it has to come from the company. Once that is done, so I think they can -- they are planning to start their cash market in next quarter maybe or maybe in next 4 to 5 months. Then slowly and gradually, we can see that they will also introduce their derivative products for the F&O segment.

So what is happening because of the regulations that MSE and BSE can have only one expiry in a week of their benchmark index. So that gives a space for another exchange. So the -- MSCI has already applied for the expiry of their contract on a certain day, which still is not out.

So we believe that if they get the clearance from the SEBI, there will be challenges. But once they get the clearance and this product, people will definitely love to trade on this product because opportunities are not much which they were earlier.

So this will help in the development of overall market. This will give traders one more product to trade. So I believe that MSCI has a bright future. And in coming years, it will take some time. But in coming years, we can see this exchange will also be very competitive with the current 2 exchanges. Kamlesh, you may add.

Just one more question. Do we see any competitiveness with respect to the cash market? Because in the cash market, the both existing players are very much dominant.

So yes, there will be. Definitely, there will be some challenges. Because market is big, participants are increasing, as we all see, still India has scope of growth in the participation by the retailers, especially by the young generation. So there is a scope of third exchange. And exchange management, we believe they are having some good strategy to penetrate into retail and derivative both. And they are working on the strategy.

The strategy, what they are thinking, how they will go into the market, that they can only disclose. But we are pretty much sure that there is a scope of another exchange. And I tell you one more thing about MSCI, which is in public domain that all the regional exchanges, all the companies who were listed on the regional exchanges like Calcutta Stock Exchange and Jaipur Stock Exchange and so many regional changes. All those companies are now listed on MSCI, right?

So -- but they just have to kickstart their equity segment. And the company, you can see a lot of companies which are not listed on MSE-BSE, you can see your MSCI, the companies which were earlier listed on the regional exchanges. So there are multiple ways by which an exchange can penetrate and create their own market in the cash market.

The only point is, do India have a scope of more growth of participation? Answer is yes. So we believe MSCI, the people sitting on the top, they are very intelligent. They understand all these things, and they are formulating their strategies in a well-planned manner, and they will roll out it as soon as they solve all the initial hiccups of tech and all. So we believe we can see in next -- in quarter 1 of '25, '26, we can see the cash market should be out.

Kamlesh, sir, if you want to add.

Yes, yes, yes. See, even SEBI believes that there is a scope for third exchange. And accordingly, they have given certain approvals. Secondly, on valuation front also, I mean, valuation at which we have entered -- we have made this investment looks attractive. Third thing is retail base is increasing, and there is always a product innovation when new exchange comes. So they will bring with their own set of products. And that will give wider participation.

And the number of people joining the platform by the way of investment as well as for trading purpose is sizable and all of them have a very good track record. So we believe that gradually, the volume will go up and exchange will perform better.

Great. But does Share India have an executive role or we have just a passive investment right now?

Sachin.

Sir, we cannot interfere in the functioning of the exchange at all. So as a participant, we can only ensure the participation from our side once the products are out, we cannot interfere in the working of the exchange in an independent body, regulated by the SEBI. Brokers, as a broker, we don't have any active role to play in the strategy part. We can only ensure -- so okay, the question is, if we may not be the investor. So we might not be very keen to participate in their products when they will launch them.

But they have smartly engaged Share India, one of the prominent pro brokers in India, Zerodha and Groww, who are the biggest retail brokers in India. So they try to engage the -- didn't try to engage with the financial people. They try to engage with the strategic partners who can participate when the products will be out. So who will generate the volumes, who will push their products into the market, only the people like Zerodha which can definitely trade like we have a good set of traders with us. So we all will help them when the products will be out. Before the product is out, we have no say and no -- we are not part of the planning.

[Operator Instructions] Next question is from the line of Ayushi, an individual investor.

[indiscernible].

Your voice is echoing.

Ayushi, please use handset mode.

My question is the reason for decrease in AGTU from INR 10,004 crores to INR 8,200 crores.

So I will start and Kamlesh sir and Abhinav can definitely give their inputs on it. So ma'am, as Kamlesh explained, since last December -- mid-November, December, SEBI regulations, the new regulations have been imposed because of which we see that we used to have expiry on daily basis.

Now we have only 2 expiries in a week. And that too of only the benchmark index. So that actually dented the volumes. And because of the low volumes, we are observing a lot of sharp spikes in the indexes where we have expiries in a week. So both of these things are leading to the low participation. And also the major reason is increase in the ELM.

ELM is the extreme risk margin on the expiry date. So that has also made tough for the clients and traders to take larger positions. So as I said, these things will be adapted over the period of time. And we believe that in a quarter or 2, we have already seen in last so many years, SEBI always come with the new regulations.

So what used to happen that those regulations take their own time to -- people take their own time to get used to formulate the strategies. We also need to make some changes in the strategies. Now the higher volume will not be the core strategy, maybe the better margins and low volumes can be the new strategy. We are working on this. And I think it's a matter of quarter 1 and 2.

Also, the increase in [ SGT ]. That will also get implemented from this quarter 3 only. So putting all these things together, so volumes have come down, and we can see this trend maybe for 1 and 2 quarters. But after that, we are very hopeful that participation is there and still new account opening we are observing from Tier 2, Tier 3 cities is there. So going further, we'll bounce back, and we're able to match the earlier numbers. But as of now, we need to consolidate, we need to analyze and then slowly increase back to the normal. Kamlesh sir, if you want to add something.

No, I think you explained properly.

I also would like to add, this is Abhinav. I would just like to add a couple of points in addition to what Sachin sir has already said, that whatever drop in ADTO that we have seen is in line with industry standards for all the reasons that Sachin has already explained. Our market share has remained more or less stable in comparison to on a quarter-on-quarter basis. And the drop is in line with the overall industry.

Having said that, we believe we will outperform the industry as a whole because we are working on a lot of new products, of which MSE is one as Sachin has already explained. And going forward, products that are already growing in India, including BSE Sensex and other commodity-related product, we would be likely positioned to capture a bigger market share in all those products.

So our ADTO growth will be faster than the industry. And hopefully, as market recovers from all the regulatory turbulence that has been created in 2 quarters, we would be rightly positioned to capture a bigger piece of the market share.

Kamlesh sir, you were saying something.

No, I think it has been explained properly.

We'll take our next question from the line of Rahul, an individual investor.

So my question is related to MTF. MTF book has increased over the last quarter or 2. What could be the contribution capital?

Abhinav, do you want to answer?

Sorry, could you please repeat the question? I was not able to hear, please?

It is related to the MTF book. It has been increasing over the last quarter or 2. What would be contribution factors?

See, essentially, it is related to 2 things, multi-legged strategy. As the management of both Sachin sir and Kamlesh sir have already explained, we have been continuously focusing on our retail-oriented products, which includes opening new branches and catering to that kind of segment, which requires retail-oriented product. So a major reason is that we have been able to grow our MTF book because we have been targeting those clients specifically, who engage in retail savings.

Also, what has happened in this last quarter, we have been able to activate a lot of customers, and add a lot of new clients for uTrade Algos as a product. And once you engage with the customer, you need to offer a 360-degree bouquet of services to them, of which MTF is one. So going forward, we are very aggressive on our MTF book and our target, subject to market conditions. And we really believe that going forward, in a long-term scenario, MTF as a revenue source would be a great line item in the Share India income statement.

[Operator Instructions] Next question is from the line of Akash Sharma, an individual investor.

I have a few questions. The first one is that we have recently started portfolio management services, right, post SEBI approval. So how do we envision it contributing to company's overall growth and revenue streams once operational?

Sorry. So I just want to clarify that we said we got the Board approval to open for the PMS license. So we have applied to the SEBI for the license, and we believe that next 2 months or 3 months, we'll get the SEBI clearance. And once we get the SEBI clearance, we are in talks with some fund managers from -- who are very well established and experience of not less than decade.

So once we get the license, we'll formalize the strategy and we'll roll out the PMS services in quarter 1 of next financial year.

So we are yet to hire a portfolio manager, right?

Yes. We are a -- we are in talks. Yes.

And to answer your strategy, as we have already mentioned that even in the opening remarks that we want to focus on wealth management and third-party distribution product, which also includes our internal in-house product. PMS is the starting point of the entire strategy, though individually PMS might not be able to contribute a very bigger piece, but it is a starting step in whatever the AMC and Wealth Management distribution activities that we wanted to going forward as company at a strategic level.

We can see the clear shift in the planning and thinking process of the company. The company is continuously bringing many products which are retail focus, starting from the uTrade Algo, then MTF, then institutional debt, now PMS and wealth distribution, third-party product distribution, all these things. So we are continuously trying to introduce new products, and we are actually executing it very well.

And slowly and gradually, if you look at the broader side, in the next few years, we can see all these different verticals will start giving us very good revenues and give us more stability. And Share India will be far more safer company than the other competitors.

Okay. And sir, do we have capital commitments yet or we are still in the process?

We are still in the process of starting, as we said, we have only got the Board approval and the capital commitment for PMS is in the process right now.

Okay. And lastly, sir, any details on the 18-month right issue you conducted last year?

Sorry?

A few more details on the rights issue that we conducted last year, like how the funds being utilized...

Okay. So all the right issue was done in May 2023. All these funds was supposed to come by September '24. And you can see in September '24, all the warrants that were to be exercised were exercised. And the entire money has flown into the balance sheet in the September itself. So no update on that chapter in this quarter.

Here, I would like to add because of the right issue and timely decision to strengthen the capital base has helped us a lot in planning our various new initiatives. And this will come as a great strength for the company. As of December, we have net worth on consolidated basis, around INR 2,300 crores. And by the end of the year, possibly we'll be crossing INR 2,500 crores of net worth. So that's a good sign, which will help us to take new initiatives as well as it will expand our product portfolio and the retail expansion plus all the new things that have been discussed like wealth management and other things.

So this will help us a lot in future. The right issue was highly successful and almost fully, it was subscribed by the investors. Thank you.

We'll take our next question from the line of Aditya Bhartia from Electrum Capital.

Just a question. We've been talking about wealth management for the last few quarters. What exactly would -- what is our go-to-market strategy? What is the process so far? What -- if we could get some more details on what that is going to look like and what it looks like right now in terms of our book, et cetera?

So I will start and Abhinav and Kamlesh sir can add. So one thing, sir, last quarter, we -- as we explained that wealth is one product with that I think it should be in the [ kitty ] of Share India. And as India is growing well, demand is going up. Earlier mutual funds or SIP, it was a basic product that people used to look up to. And now people are asking for PMS, AIF and many innovative products.

And now wealth demand is coming from events -- wealth used to be the ultra HNI product. Now it is going to a bit higher retail and some HNIs. So we believe in the next 5 years, wealth distribution is going to be a very good division for us and for the entire market also as market is growing.

So here will -- we are planning to take a top-down approach. We are discussing with some good people who have experience of at least 2 decades in the wealth division. And again, as I said, things take its own time or negotiations take its own time. So we believe that we'll roll out or will finalize all these things, and we roll out the wealth company or wealth product by quarter 1, later part of quarter 1 or maybe quarter 2 of next financial year. So wealth, is a product which has its own gestation period.

So maybe 1 or 2 years, will take off slowly, will take some time to push it really hard. But the team is very important. The core part here is the team because their knowledge will help us getting -- get the new funds and anything. So we are scrutinizing the right people. And we -- again, we are in touch, as I said, in PMS, we are in touch with good fund manager. Same in wealth, we are discussing with 2, 3 bright people, and we hope we'll close them by the end of this financial year, and they will be with us maybe quarter 1 later part or quarter 2 of next financial year. Then only we can comment on the size. So operations have not yet started. So this is the status of wealth. Kamlesh sir and Abhinav, you can add.

Yes. See, the idea is to remain relevant. So whatever exercise we do, we try to be relevant. That is capturing -- targeting sizable market share. And here, again, we have a lot of strength. We have best people in our independent Board of Directors. And we are evaluating all the options that are available. And ultimately, based on the input of all the directors and the Board, we will be able to structure it properly so that whatever we do will generate a lot of confidence among the stakeholders and the investors.

Also, just to give a little bit of flavor to what Sachin sir and Kamlesh sir have said, that we internally bifurcated wealth management into 2 segments. One was HNI and Ultra HNI, another was affluent and emerging affluent. We believe that as the HNI and Ultra HNI segment in wealth will grow, it will become a more high touch point business, while the affluent and emerging affluent would be a more digital oriented in nature.

So right now, our focus is to -- on the first part of it, which is the Ultra HNI, HNI segment because we believe that they would require a lot of specialized products and a lot of customized services that would be required by brokers like us to offer them. Having said that, yes, as Sachin said that once the team is in place and the operations are kick started, only then we would be able to provide you a lot more clarity on that sort of numbers in terms of revenue and the P&L that it would bring it into the equation.

But we have been very consistently maintaining our stance that we have to grow our retail business in its entirety. Wealth management is one part of it, the entire equation. What we believe is that going forward, we want to be more client-centric and do businesses which are more client-centric in nature.

All right. So this is still a year or so ahead, right? And with the focus on HNI guessing, we will still be doing a lot of our RM additions. Is that correct?

Yes. Yes. Yes.

Okay. And coming to the PMS and AIF side of the business, assuming we get the licenses, et cetera, what would the employee cost structure look like going forward, let's say, 1 year from now on compared to where we are today?

So honestly speaking, in my current structure, it would not be very much of an expense. If you see on a year -- quarter-on-quarter basis, I do around INR 100 crores of an employee expense approximately, give or take something. In the beginning part of it, as Sachin sir has already explained that both these products will have their own gestation period. So we don't see too much of an initial employee cost just jumping on to the balance sheet into that scope. But yes, we would be able to provide you clarity as and when the teams are hired and a lot more things are announced in the public domain, in terms of numbers.

But on a base of around INR 100 crores of employee expense on every quarter, I don't see this number jumping very significantly in a short-term basis.

We take our next question from the line of Sana, an individual investor.

Can you please share insight on specific strategies you're implementing to enhance technology with the retail sector? And also what are the future plans for acquiring and retaining retail customers?

I think Abhinav can answer the question, but I will just give you some insight and Abhinav can add. So as we said that we are focusing -- we are not planning to go on the discount broking side. So as we are focusing, trying to give the retailers -- give our clients the full bouquet of products, starting from MTF, from PMS, wealth products, mutual funds and corporate everything.

We just want our investors, our clients to be more financially aware. They should have the bouquet of different products, insurance and everything from one company. So this is what we are trying to do. So we believe next 2 to 3 years, MTF will be the one product will be the -- which is the most retail favorable product.

And along with that, investment products like PMS and third-party wealth products, will also add on to the customer acquisition policy. So the idea is in next year, we should be focusing totally on the customer acquisition part by offering them new bouquet of products. So this is how we are planning to go ahead. And in our vertical, in our segment of the financial world, there we can offer multiple services to one client, like if we are dealing with some company in Merchant Banking space, we can offer them the insurance also, we can offer them the investment products also.

The cross-selling opportunities are a lot. So it's -- if you look at the bird's eye view, so if we're able to create all these products and with all the products we are discussing, so we'll be able to give a lot of cross products to one customer, and that will add a lot of value to the company. There's a cost of selling those products will be down, and it will add value to the customer's life. This is from my side and Abhinav can also answer the tech part that what technology we are planning to use for the retail piece.

Sure. So I would like to answer it from both from a tech and strategic perspective. So from a tech perspective, as you say, that we have been constantly working on it, and we believe that technology is the main ingredient in the entire retail-centric nature that we were planning for last 3 years for Share India and hence the acquisition of uTrade and Algowire that happened. So most of our tech pieces that we have currently built are by the virtue of our acquisition of uTrade and Algowire.

And now with Silverleaf coming into the play as well, we would have some addition of tech talent over there as well. So the critical advantage that I want to highlight is that most of our tech pieces that we have built are not vendor-dependent are completely in-house in nature, which gives us not only flexibility in terms of customization, but reduces our time to market and go to market very significantly. That's number one.

And in terms of retaining client as Sachin sir said, that we see this business in 2 ways. One, we are very clear that it would be a mix of brick-and-mortar strategy, where we would have high-touch businesses. And we would offer clients a 360-degree sort of services, where they are not only broking with us but are doing multiple party products with us.

In this strategy, uTrade Algo will also help us in terms of customer acquisition, because it is sort of a unique product that is available with us, so which helps us -- which sort of becomes a hero product and sort of helps us acquire the customer. And once customer is there, we can then cater to a lot more services that we offer as a group.

Also, we see this business in terms of what we offer via the strength of the balance sheet and via the strength of the services. MTF is a product that we believe that we can really cater by the strength of our balance sheet, because it requires funding from our side. And once this business grows, we can look at outsourcing this business to third-party NBFCs sort of becoming a distribution partner for them. And also, all the third-party products will add on to the fee and commission business of the entire ecosystem.

Okay. And sir, one more question I have. Is there like other specific macroeconomic or regulatory factors you're monitoring that could affect your business performance?

Kamlesh sir, can you comment on that?

Sorry?

Can you please comment on it?

What was the question exactly? Can you repeat the question, please?

So my question is, like, are there any specific macroeconomic or regulatory factors you're monitoring that could affect your business performance?

See, we have witnessed a lot of regulatory changes in last quarter and some more are likely to be implemented from 1st of April. Now otherwise, things are looking stable. Once the impact of regulatory measures are known, then we can module our business accordingly. And ultimately, what is good for the industry is good for all the stakeholders.

So whatever measures so far has been taken by SEBI seems to have benefited the investors and the investor base has grown. And we will definitely get benefited with the confidence that the investors are having in the market. Currently, in last 1 year, the FI has sold close to INR 4 lakh crores of equities, whereas the equal amount has been pumped in by the retail investor basically. So this has made our market more stable.

The base is expanding. And the fabric of the market also is improving. Many new young people are participating into the market. And overall, we see that with the government initiative and the budget, which is likely to come day after tomorrow. So that all will give boost to the capital market. And we are fully prepared to take new challenges, and we are best placed to see that we convert them into the opportunities.

We'll take our next question from the line of Prashant Galphade from ISG Securities.

[indiscernible].

Your voice is not very clear.

Yes. Sorry if this question has already been addressed. I just joining the call now. I have only one question. I just wanted to understand the reason behind the decline in our broking and trading business?

See, this is more or less in line with the fall in the market turnover. And some of the international factors that has destabilized the market in last quarter. That was challenging for all the intermediaries, and we are no exception.

The measures taken by the regulator has played out as well as the STT has been increased. So all of this had a severe impact on the performance of all the broking industry. And steadily, I think in next quarter or 2, things will get stabilized. And thereafter, we'll be coming out with new strategies in line with the market requirements.

See, we keep on improving upon our strategies based on the market conditions, and volume and volatility. So these are the main factors for us. And with the kind of automation that we have, we have 3 companies, technology companies in our belt as a subsidiary. So we are far ahead in the terms of technology and digitization. And we believe that the future belongs to the technology, where we have invested quite a lot amount of money, and that will pay us rich dividend. That will also see that we outperform our peers. Thank you.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Kamlesh Shah for closing comments. Over to you.

Yes. Thank you, madam. I would like to thank all the participants for sparing their time, especially during the market hours and also asking some very, very good questions, which will give us food for the thought. And this will help us to further strengthen our belief in the market as well as to create right atmosphere and right strategies to tackle the market.

So I would like to once again thanks all the participants for their valuable confidence, very valuable contribution, their trust on the company and their support for the company. Thank you very much.

Thank you sir. On behalf of Share India Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you, everyone.

Thank you -- thank you.