I have been following the GameStop saga over the last few days. It’s a wonder what a few bold investors on Reddit could do to the Hedge Fund behemoths. While regulators globally have very strong rules for cartels such as Hedge funds, they are still able to place huge bets on markets and swing them.
With the line between Investment Banking and Retail Banking blurring by the day, one wonders whether its just a matter of time before small investors in India begin to resort to this type of activism.
If so, what could regulators do? Would it then be wise for a neo-bank to restrict its investment offerings to simple mutual funds and stocks - rather than to offer the whole buffet of futures, options, short-selling etc …
Talking about the separation between Investment Banking and Retail Banking activities- The Glass Steagall Act was enacted specifically for the same in 1933. You can hear some of it in @Vivek_YS 's Talk here:
Also as a customer myself I would be more comfortable in having one custodian of all my money and understand where you are coming from.
A wide variety of asset class to choose for while investing is what I gather as an ask from you!