The difficult business environment in retail broking business, coupled with PINC’s plan to focus on investment banking and institutional broking led to the merger, said a person close to the development, as cited by the publication.

Ahead of PINC shutting its retail business, Sandip Raichura, who was heading its wealth management division, left the firm to set up Castanea Wealth Management. Raichura has taken with him eight ex-PINC officials to Castanea.

“The decision to merge the business was taken at the behest of both the managements for the benefit of employees,” a former PINC employee said. He said all employees (excluding those who joined Castanea) joined Fullerton Securities.

PINC’s decision to exit the retail business follows the downturn in the equity broking business due to low volumes and thin margins amid cut-throat competitions. Several other brokerages have either shut down business or reduced staff strength significantly following the downturn in equity broking business this year. Alchemy Shares and Stock Brokers and Mata Securities both reportedly recently shut business lines.