EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA growth and development opportunities and challenges

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Equity broking in South Asia is very old and well established BSE : 1875 Karachi : 1947 EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Enterprise driven, indigenously developed and has greater risk taking abilities. Speculative streaks and sound knowledge of the markets EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Equity Broking Industries in India, Pakistan, Bangladesh, Sri Lanka experiencing rapid growth business distribution network investor services enterprise value EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

BANGLADESH : value of shares traded $million

INDIA value of shares traded $million

NEPAL value of shares traded $million

PAKISTAN value of shares traded $million

SRI LANKA value of shares traded $million

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Opportunities growing equity culture dynamic markets institutional investing: domestic/foreign expanding product range EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Key Drivers reforms in regulation technology ; becoming more affordable communication networks governance standards skill sets/expertise deepening/integrating markets EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Size and Significance gaining stature and significance in emerging/global stock markets. India $ 1 trillion market; Pakistan/Bangladesh showing rapid growth increasing research on south Asian markets being tracked by global indices growing interest in south Asian stocks. EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Current Trends corporatised offering financial services wide distribution network sub brokers/franchises subsidiaries: derivatives/commodities e-broking accessing capital markets non resident services EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA New areas for growth stock exchange demutualisation new products/lines of business cross selling distribution of financial services consumption driven economies EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Emerging trends driving further growth sovereign wealth funds islamic financial products domestic FIs /Pension Funds products in the foreign markets collaborations with banks EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Good in Numbers Number of Brokers: India : 2000 Pakistan 300 Bangladesh : 250 Sri Lanka : 15 Nepal : 22 ; Maldives : 8 EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Easier Access Membership Criteria: India : Deposit Based (on tap) Pakistan : Card Based Bangladesh : Card Based Nepal : Deposit Based Maldives : Card Based EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Expertise in products India : Equities/Debt/Derivatives Pakistan : Equities/Derivatives/ Modaraba Certificates Bangladesh : Equities/Debt Nepal : Equities Maldives : Equities/Debt Sri Lanka : Equities/Debt EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Competitiveness Commission Charged (% of trade) India : 0.1% -0.5% Pakistan 0.1%-0.5% Bangladesh : 0.2%-0.5% Sri Lanka : 0.8%-1% Nepal : 0.7%-1% Maldives : 1%-3% EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Access and Reach Number of Terminals India : 100000 Pakistan 2000 Bangladesh : 1200 Sri Lanka : 315 Nepal : 22 Maldives : 1 EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Leading Firms turnover % accounted by top 10 firms India : 25%( Mumbai) Pakistan 27% (Karachi) Bangladesh : 38%(Dhaka) Sri Lanka : 39% Nepal : 28% EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Typical services offered trading research sale of Mutual Funds technical Analysis fundamental Analysis M&As IPOs portfolio Management wealth Management E Broking EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Aspirations to acquire more FII clients to diversify into full service financial services firms expand into other businesses coming out with an IPO forge joint ventures/business relationships EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Shortcomings limits on the number clubbish approach resistance to reforms opposition to Corporatisation indifference to governance quality EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Foundations of a strong market education and certification disclosure and transparency ethics in business investor protection information dissemination financial literacy EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA What makes it work giving it an industry status engage broking fraternity in national consultation process fair treatment in national media and public opinion disincentives for indiscipline industry initiatives : securities dealers associations/forums etc., greater interaction with the public EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Looking Ahead A market well integrated Possibly a region well integrated A wide bouquet of financial services Providing important linkages (stock markets, banks/insurance/foreign markets) EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Looking Ahead Educating and empowering investors Gaining confidence and trust of public authorities Enabling domestic institutions expertise in capital markets EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA Looking Ahead Contribute to the overall strength of the financial system With developing greater linkages with the global finance EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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