Bse, Nse and Sebi
A OVERVIEW OF INDIAN BROKERAGE INDUSTRY | Equity brokerage industry in India is experiencing rapid growth and diversity. Following the wide range of stock market reforms in the early 2000’s, brokerage industry underwent major transformations from being engaged in only brokerage business to offering a wide range of financial services. A modern broking house in India may well be a corporate entity that offers a wide range of products, relies on research for advice, uses modern technology, has large distribution network connecting the country, provides investor education and awareness and is compliance focused. These developments have resulted in a huge spurt in business as also growing market share of the large sized brokerage houses that led to surge in enterprise value, thus becoming objects of interest for global investing. With the stock market momentum likely to continue, broking firms could look forward to scaling up their resource mobilization to fund growing operations and expansion. Brokerages mopping up huge resources from the market are not unusual even in the emerging markets. | | | | | | Indian broking houses could look forward to a period of growth and consolidation. India’s economic growth and deepening of the financial system will present the broking firms with numerous opportunities for growth and expansion. Integration of the financial markets will enhance the scope of their business and scalability. Access to public equity markets will enable them to raise resources to fund expansion and growths as also pursue useful business acquisitions. Growing international investor interest in India will add newer opportunities to scale up the business as also harmonsing with global standard and practices. Introduction of new products such as mini contracts in the derivatives and other futures and options products will add new opportunities for creating new business segments. | | While opportunities abound, there is a