InvestorQ : Do you see brokers being barred from selling digital impacting the broker volumes in a big way?
diksha shah made post

Do you see brokers being barred from selling digital impacting the broker volumes in a big way?

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ishika Banerjee answered.
4 months ago
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That may not happen and in fact, it will not impact the brokers in any way. Currently, the biggest sellers of digital gold are the wallets like Paytm, Phone Pe and Google Pay. Phone Pe alone had a 35% market share of digital gold sales. If you add up Paytm and Google Pay, the share left for brokers is quite small. Digital gold is just 1.4% of total gold sales volumes. In India, brokers have a larger franchise selling sovereign gold bonds and gold ETFs.

For most brokers, the equity and distribution business of traditional SCRA products provides the chunk of revenues. Most brokers were only looking at digital gold as a supplementary product more due to the simplicity and convenience of the product. In terms of revenue or profit contribution, the impact should be absolutely minimal. In a way, it is better as it would force brokers to focus more on selling gold ETFs and sovereign gold bonds.

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