Zerodha, Groww, Angel One, Upstox suffer July meltdown as 6 lakh investors drop off
Analysts attribute the sustained losses to a sharp fall in futures and options (F&O) trading, following stricter Securities and Exchange Board of India (SEBI) rules introduced last year.
- Aug 13, 2025,
- Updated Aug 13, 2025 7:46 AM IST
India’s top discount brokerages — Groww, Zerodha, Angel One, and Upstox — lost nearly 6 lakh active clients in July, extending a slump that’s erased almost 20 lakh investors in the first half of 2025, industry data shows.
The July decline hit across the board, with other major firms like Mirae Asset Capital, PhonePe Wealth, Sharekhan, Kotak Securities, and Motilal Oswal Financial also reporting drops in active users.
Analysts attribute the sustained losses to a sharp fall in futures and options (F&O) trading, following stricter Securities and Exchange Board of India (SEBI) rules introduced last year. The changes — tighter margin requirements, fewer weekly expiries, higher capital thresholds, and heavier taxation — have made derivatives trading less attractive for retail investors.
Market experts also note a shift toward managed investment products such as mutual funds, portfolio management services (PMS), and alternative investment funds (AIFs), drawing capital away from high-frequency trading platforms.
Some brokerages bucked the trend in July. SBI Securities added 33,800 active clients, Paytm Money gained 22,100, and ICICI Securities added 10,800. Other gainers included Aaritya Broking, Choice Equity Broking, Moneywise Finvest, and Jainam Broking.
India’s overall stock market active user base fell 4% in July to 45.96 million, down from a January peak. The drop was steepest among F&O traders, underscoring the regulatory impact on market behavior.
Despite leading the market with 12.35 million active clients, Groww still saw a decline from June. Zerodha, Angel One, and Upstox also posted significant month-on-month losses, reinforcing a cooling-off in retail participation after years of explosive growth.
India’s top discount brokerages — Groww, Zerodha, Angel One, and Upstox — lost nearly 6 lakh active clients in July, extending a slump that’s erased almost 20 lakh investors in the first half of 2025, industry data shows.
The July decline hit across the board, with other major firms like Mirae Asset Capital, PhonePe Wealth, Sharekhan, Kotak Securities, and Motilal Oswal Financial also reporting drops in active users.
Analysts attribute the sustained losses to a sharp fall in futures and options (F&O) trading, following stricter Securities and Exchange Board of India (SEBI) rules introduced last year. The changes — tighter margin requirements, fewer weekly expiries, higher capital thresholds, and heavier taxation — have made derivatives trading less attractive for retail investors.
Market experts also note a shift toward managed investment products such as mutual funds, portfolio management services (PMS), and alternative investment funds (AIFs), drawing capital away from high-frequency trading platforms.
Some brokerages bucked the trend in July. SBI Securities added 33,800 active clients, Paytm Money gained 22,100, and ICICI Securities added 10,800. Other gainers included Aaritya Broking, Choice Equity Broking, Moneywise Finvest, and Jainam Broking.
India’s overall stock market active user base fell 4% in July to 45.96 million, down from a January peak. The drop was steepest among F&O traders, underscoring the regulatory impact on market behavior.
Despite leading the market with 12.35 million active clients, Groww still saw a decline from June. Zerodha, Angel One, and Upstox also posted significant month-on-month losses, reinforcing a cooling-off in retail participation after years of explosive growth.