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Cryptocurrency investment platform Coinswitch is planning to enter the Indian stocks trading market and compete with technology-driven brokerage firms like Zerodha, Groww, Upstox, and Paytm Money.
According to an undisclosed source cited by the Economic Times, Coinswitch is preparing to apply for a stockbroker license with the Securities and Exchange Board of India (Sebi). In addition to pursuing a stockbroker license, The company is reportedly engaged in ongoing discussions with non-banking financial companies (NBFCs) and banks to offer fixed deposit services
In an interview with Moneycontrol in December 2022, Ashish Singhal, the co-founder and CEO of Coinswitch, mentioned the company's goal to launch seven new products by the end of next year. These products include fixed deposits, bonds, exchange-traded funds (ETFs), stocks, and mutual funds.
Coinswitch aims to diversify its offerings due to the recent challenges faced by cryptocurrencies. Although the price of bitcoin has partially recovered in the past six months, it is still only half of its peak rate recorded in November 2021.
As a result, the Bengaluru-based company has shifted its focus to Indian stocks. The plan to offer trading and investment in US stocks was delayed after the Budget 2023 increased the tax collected at source (TCS) for foreign remittances under the Liberalised Remittance Scheme (LRS), impacting retail investors interested in US equity instruments.
The company intends to introduce these new products by the end of the current financial year. Ashish Singhal stated, "Our ambition is to become a comprehensive wealth tech platform. We have several products in our pipeline and will share details about applying for a stockbroker's license from Sebi when we announce our new products."
He further added, "This initial focus has laid a strong foundation for us to expand into other asset classes and become India's preferred destination for wealth technology."
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