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EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Presentation on theme: "EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA"— Presentation transcript:

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

2 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

3 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

4 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

5 BANGLADESH : value of shares traded $million

6 INDIA value of shares traded $million

7 NEPAL value of shares traded $million

8 PAKISTAN value of shares traded $million

9 SRI LANKA value of shares traded $million

10 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

11 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

12 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

13 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

14 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

15 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

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

17 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

18 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

19 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

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

21 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

22 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

23 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

24 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

25 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

26 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

27 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

28 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

29 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

30 Thank You bandi.ramprasad@gmail.com +91 98201 59618
EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA


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