BN Rathi Securities Board Approves Business Transfer and Merchant Banking Division
BN Rathi Securities announced strategic expansion through board-approved business transfer from SVCM Securities and establishment of new Merchant Banking Division requiring ₹25 lakh investment. The decisions aim to diversify revenue streams amid declining equity broking performance.
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BN Rathi Securities has announced significant strategic developments following its board meeting held on December 17, 2025. The financial services company has approved two major business expansion initiatives while continuing to navigate challenges in the equity broking sector.
Board Meeting Decisions
The Board of Directors convened on December 17, 2025, at 1:30 PM at the company's registered office and approved two key proposals that mark important steps in the company's growth strategy:
| Decision: | Details |
|---|---|
| Business Transfer: | Acquisition from SVCM Securities Private Limited |
| New Division: | Merchant Banking Division establishment |
| Investment Amount: | ₹25.00 lakhs for merchant banking setup |
| Regulatory Approvals: | Subject to NSE/BSE/MCX/CDSL approval |
| Meeting Duration: | 1:30 PM to 2:20 PM |
Business Transfer Agreement
The company has approved the transfer of business from SVCM Securities Private Limited, a registered member of NSE, BSE, MCX, and CDSL. SVCM Securities operates from B-702, Divine Jalpa, Jambli Galli, Near Jain Temple, Borivali (West), Mumbai-400092. The transfer involves client accounts including demat accounts and trading accounts, subject to approval from relevant stock exchanges and regulatory authorities.
The business transfer complies with SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and Master Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024, ensuring adherence to SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Merchant Banking Division
BN Rathi Securities has decided to establish a new Merchant Banking Division with an estimated investment of ₹25.00 lakhs. The company is in the process of obtaining SEBI registration for merchant banking services, which will diversify its revenue streams beyond traditional equity broking.
| Parameter: | Details |
|---|---|
| Division Name: | Merchant Banking Division |
| Investment Required: | ₹25.00 lakhs |
| Registration Status: | In process with SEBI |
| Expected Benefits: | Revenue diversification |
Recent Financial Performance
The company's standalone financial results for Q2 FY2026 reflected industry challenges:
| Particulars (in lakhs): | Q2 FY2026 | Q2 FY2025 | YoY Change |
|---|---|---|---|
| Profit: | ₹262.58 | ₹381.49 | -31.17% |
| Total Income: | ₹1,469.60 | ₹1,699.20 | -13.51% |
| Equity Brokerage Income: | ₹972.78 | ₹1,073.31 | -9.37% |
On a consolidated basis, the company reported a profit of ₹234.36 lakhs in Q2 FY2026, compared to ₹398.52 lakhs in the same period last year, representing a 41.19% decline.
Strategic Outlook
These latest board decisions demonstrate BN Rathi Securities' commitment to diversifying its business portfolio and expanding its market presence. The business transfer from SVCM Securities could enhance the company's client base, while the new Merchant Banking Division represents an entry into higher-margin financial services. These strategic moves come at a time when the company is working to offset challenges in the traditional equity broking segment.
Historical Stock Returns for BN Rathi Securities
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.12% | -5.46% | -1.47% | -32.72% | -71.97% | +213.84% |
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