New Delhi, Feb. 10 -- Diversification has emerged as the critical strategy for the broking industry to shield against policy shifts, with firms maintaining multiple revenue sources proving more resilient than standalone entities. According to a release from Crisil, this trend follows a proposed increase in the securities transaction tax (STT) on derivatives in the Union Budget 2026-27 and significant regulatory changes by the Securities and Exchange Board of India (SEBI).

These measures, designed to curb speculative activity and protect retail investors, contributed to a 25 per cent drop in average daily turnover (ADTO) volumes in the second half of the last fiscal year. Despite a partial recovery, volumes remained below previous peaks, ...