My Money Securities Ltd Management Discussions

Global economy overview

The global economy remained resilient in the year 2024 (Calendar Year 2024), expanding at 3.2% (as per IMF World economic outlook, Apr25).The rapid rise in trade tensions and heightened policy uncertainty are likely to exert a substantial drag on global economic activity. It is estimated to grow by 2.8% in CY2025 and 3% in CY2026, much below the historical average of 3.7% (2000-19) due to global challenges on various fronts. While strong real income growth and lower interest rates boosted activity, weaker government spending, sluggish consumer confidence, and external demand fluctuations restrained growth in some regions.

In advanced economies, the U.S. growth forecast for CY2025 is expected to slow down to 1.8%, on account of greater policy uncertainty, trade tensions and softer demand momentum, whereas the euro area is expected to grow at 0.8%, before rising to 1.4% in 2026 as financial conditions improve. Other advanced economies see stable growth, with recovering incomes offset by trade uncertainties. In emerging markets and developing economies, growth is expected to slow down to 3.7% in 2025 due to various trade measures in recent times. On the back of the recently implemented tariffs and prolonged trade policy uncertainty, Chinas growth was revised downward to 4% in 2025. Indias growth to remain stable at 6.2% in 2025 and 6.3% in 2026 supported by private consumption, particularly in rural areas.

Indian economy overview

The Union Budget 2025-26 strikes a balance between sustaining economic growth and maintaining fiscal discipline. By streamlining regulations, supporting MSMEs, and boosting investments and exports, the budget outlines a clear roadmap toward Viksit Bharat 2047. The budgets emphasis on sectors including tourism, healthcare, and manufacturing will catalyse job creation. The commitment to fiscal consolidation, with a targeted fiscal deficit of 4.4% for FY26, strengthens Indias path to debt sustainability. These measures are expected to stabilize the macroeconomic environment, encouraging private sector participation and investment. Overall, the budget lays a strong foundation for long-term economic resilience and growth.

Indian Economy Outlook

India to remain relatively insulated against the global shocks in the near future and continue to grow strongly. The structural long-term growth story for India remains intact driven by favourable demographics and stable governance. According to the IMFs World Economic Outlook Report, India is expected to maintain its position as the fastest-growing major economy, Growth will be driven by continued expansion in the services sector and a boost in manufacturing, supported by government efforts to enhance infrastructure and streamline tax policies.

Capital Markets-Industry overview

India is 4th Largest Market by Market Cap Indias domestic equity markets continues to rank fourth-largest globally with over $4.0 Tn on market cap.

Table: India is the 4th largest market by Market Capitalisation.

Source: https://companiesmarketcap.com/allcountries/ (as on 26th May 2025)

Strong Addition in Investor Base continues

Indias economic transformation over the past few decades is a narrative of rapid growth and evolving financial landscapes. Central to this story is the rise of capital markets, catalysing capital formation for the real economy, enhancing the financialisation of domestic savings, and enabling wealth creation. Investor participation has been a contributor, with number of investors growing from 2.3 crore in FY15 to 19.2 crore in FY25, increasing at a CAGR of 23% for the decade.

Post-COVID, one of the most striking developments has been the surge in retail investor participation, reflected in the sharp increase in new demat accounts opened over the years. In FY 2021, the total number of demat accounts stood at 5.5 crore, which increased to 19.2 crore by FY 2025, growing at a CAGR of 37%. In the last fiscal year, approximately 4.1 crore demat accounts were added, with CDSL, Indias largest depository, contributing 3.74 crore new accounts in FY 2025.

NSE active clients see substantial growth

The financial year 2025 was marked by significant shifts and milestones. The new income tax bill was proposed, foreign institutional investor outflows reached new highs, and India witnessed its largest-ever initial public offering in the form of the Hyundai Motor India IPO. Alongside this, Narendra Modi secured a third term, while Donald Trumps return to power introduced fresh tariff policies that stirred global uncertainty.

During the year FY25, Indian capital market has witnessed strong outflows by FIIs in the secondary market (across the year). However, FIIs primary inflows (mainly IPOs) compensated the outflows to a major extent in initial 9 months till Dec24. However, the sharp outflows in 4^th Quarter of FY25 in secondary market with lower number of IPOs led the yearly number fall to negative. DIIs flows have supported the market and didnt let the market witness the fall which otherwise would have been seen.

Minimal Impact from SEBIs Regulation

FY25 witnessed slew of circulars from SEBI to streamline the market structure and few steps to prevent retail investors from speculation eventually leading to losses (as per SEBI study, 93% of F&O retail investors witnessed losses during the period from FY22 to FY24).

The measures were as below:

• True-to-Label charges by market intermediaries.

• Upfront collection of option premiums.

• Intraday monitoring of position limits.

• Removal of calendar spread benefit on the expiry day

• Increase in the Minimum contract size

• Rationalization of weekly index products

- Weekly options contracts are to be provided on a single benchmark index of an exchange.

• Increase in margin near contract expiry.

Your company was least impacted due to higher proportion of cash broking vis-a-vis F&O broking revenues compared to discount broking peers.

Capital Market Business

Broking Business

Our Broking revenue was 147111.16 /-thousands and total Income was 153649.84/- thousands.

In FY2025, India saw a significant surge in equity market participation, marked by the establishment of 4.92 crore new NSE clients accounts, up from 4.08 crore in FY24. This growth was driven by bullish market conditions and increased activity in the Initial Public Offering (IPO) markets. CDSL, Indias largest depository, surpassed the 19-crore mark in terms of demat clients, contributing to a cumulative total of 19.2 crores demat accounts as of March 31st, 2025.

Throughout the fiscal year, the Securities and Exchange Board of India (SEBI) introduced several new regulations and initiatives aimed at enhancing market penetration and growth. These initiatives included measures such as Application Supported by Blocked Amount (ASBA), a shortened trade settlement cycle, and extensive investor education campaigns. These regulatory efforts played a pivotal role in encouraging retail investors to actively engage across various product segments, thereby enriching the vibrancy and inclusivity of the Indian capital market ecosystem.

We plan to move to "Phygital Business model" which offers best of both the worlds Through enhanced customer experiences, high-quality advisory, digital initiatives, distribution of assets-based products, system-driven trading products, and network expansion, our business aims to increase scale and remain competitive. We have robust dedicated advisory desks for mass-retail and affluent clients. We set ourselves apart from discount brokers as we concentrate on knowledge and advisory.

We have opened a new office in Emaar Colonade, Golf course Extension Road, Gurgaon, Haryana.

We also plan to open few more offices over the course of next two to three years. The Company will keep its shareholders inform of the development.

OUR BUSINESS STREAMS AND OUTLOOK:

The company has made strategic investments in future business:

By order of the Board