Brokerage houses in India struggling with market uncertainties, stiff competition and falling margins, finds Netscribes

Top Quote Netscribes (India) Pvt. Ltd., launches a report on the Financial Brokerage Market in India 2011 as part of Netscribes' Financial Services report series. End Quote
  • (1888PressRelease) September 09, 2011 - Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of its Financial Brokerage Market in India 2011 report. Advent of new players and aggressive strategies by existing players will cause a paradigm shift in the troubled financial brokerage market.

    The report provides a brief introduction to the financial broking market. The market overview includes information regarding the Indian market scenario and equity volumes on a year on year basis. An indication of the prevailing brokerage structure is included as well as highlights of the business model employed by the brokerage firms. It covers information regarding the changes in brokerage fee structure due to changes in the market. The primary guidelines stated by SEBI regarding the brokerage market are provided. The market overview section also analyses the brokerage sector as a whole to understand the opportunities and competitiveness of the market through a porter's analysis. The overall distribution of brokers and stock brokers has also been provided.

    The following section explains the major drivers in the market such as increase of income levels in tier 2 cities, under penetration of equities which can be explored by the brokerage firms to increase their brokerage. Other factors include developing franchisees to gather more revenue without having to actually spend on infrastructure. Return of FII and IPO are other encouraging factors. Rising rate of FD and other traditional saving instruments are proving to be more in vogue due to the turbulent Indian market conditions which is acting as a major challenge for the market. Global uncertainties have created huge pressures on the market. Consolidation of smaller broking firms and retail investors staying away are other important barriers that the market faces.

    The trends identified are trading in mobile and online platforms along with offline modes in order to reach out to the far flung customers, new players coming in the Indian broking space making the competition even more intensive including banking institutions. Other trends include diversification of the major players in other lines of business and new innovative offerings by broking units so as to lure customers. It has been seen that broking units are also trying to hard sell demat account and bulk of the equity investments from retail customers are coming via mutual fund route. Additionally, large players are tying up with smaller players towards expanding their distribution network and to tap a larger market.

    The competition section provides the prevailing brokerage structure and a comparison of the market capitalization and profits of the major players identified. It also includes brief profiles of the major players in the market along with their financials. Key developments that have taken place in the market have been identified.

    For more details on the content of each report and ordering information please contact:

    Gaurav Kumar

    Tel: +91 33 4064 6214
    Email: gaurav.kumar ( @ ) netscribes dot com

    Gagan Uppal

    Tel: +91 22 4098 7530
    Email: gagan.uppal ( @ ) netscribes dot com

    About Netscribes (India) Pvt. Ltd.

    Netscribes (www.netscribes.com) is a pioneering knowledge consulting and solutions firm with clientele across the globe. The company's expertise spans areas of investment & business research, business & corporate intelligence, publishing services and customized knowledge database creation. At its core lies a true value proposition that draws upon a vast knowledge base.

    For more information please write to info ( @ ) netscribes dot com

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