EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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EQUITY BROKERAGE INDUSTRYIN SOUTH ASIA

• growth and development
• opportunities and challenges

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Equity broking in South Asiais very old and
well establishedBSE 1875 Karachi 1947

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Enterprise driven, indigenously developed and has
greater risk taking abilities. Speculative
streaks and sound knowledge of the markets

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Equity Broking Industries in India, Pakistan,
Bangladesh, Sri Lanka experiencing rapid
growthbusiness distribution
networkinvestor servicesenterprise value

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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• BANGLADESH value of shares traded
• million

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• INDIA value of shares traded
• million

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• NEPAL value of shares traded
• million

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• PAKISTAN value of shares traded
• million

9

• SRI LANKA value of shares traded
• million

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Opportunitiesgrowing equity culturedynamic
marketsinstitutional investing
domestic/foreignexpanding product range

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Key Driversreforms in regulationtechnology
becoming more affordablecommunication
networksgovernance standardsskill
sets/expertisedeepening/integrating markets

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Size and Significancegaining stature and
significance in emerging/global stock markets.
India 1 trillion market Pakistan/Bangladesh
showing rapid growthincreasing research on south
Asian markets being tracked by global
indicesgrowing interest in south Asian stocks.

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Current Trendscorporatisedoffering financial
serviceswide distribution networksub
brokers/franchisessubsidiaries
derivatives/commoditiese-brokingaccessing
capital marketsnon resident services

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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New areas for growthstock exchange
demutualisationnew products/lines of
businesscross sellingdistribution of financial
servicesconsumption driven economies

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Emerging trends driving further
growthsovereign wealth fundsislamic financial
productsdomestic FIs /Pension Funds products in
the foreign marketscollaborations with banks

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Good in NumbersNumber of BrokersIndia 2000
Pakistan 300Bangladesh 250Sri Lanka
15Nepal 22 Maldives 8

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Easier AccessMembership CriteriaIndia
Deposit Based (on tap)Pakistan Card
BasedBangladesh Card BasedNepal Deposit
BasedMaldives Card Based

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Expertise in productsIndia
Equities/Debt/DerivativesPakistan
Equities/Derivatives/ Modaraba CertificatesBangla
desh Equities/DebtNepal EquitiesMaldives
Equities/DebtSri Lanka Equities/Debt

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CompetitivenessCommission Charged ( of
trade)India 0.1 -0.5 Pakistan
0.1-0.5Bangladesh 0.2-0.5Sri Lanka
0.8-1Nepal 0.7-1Maldives 1-3

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Access and ReachNumber of TerminalsIndia
100000Pakistan 2000Bangladesh 1200Sri
Lanka 315Nepal 22Maldives 1

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Leading Firmsturnover accounted by top 10
firmsIndia 25( Mumbai) Pakistan 27
(Karachi)Bangladesh 38(Dhaka)Sri Lanka
39Nepal 28

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Typical services offeredtradingresearchsale
of Mutual Fundstechnical Analysisfundamental
AnalysisMAsIPOsportfolio Managementwealth
ManagementE Broking

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Aspirationsto acquire more FII clientsto
diversify into full service financial services
firmsexpand into other businessescoming out
with an IPOforge joint ventures/business
relationships

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Shortcomingslimits on the numberclubbish
approachresistance to reformsopposition to
Corporatisationindifference to governance
quality

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA

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Foundations of a strong marketeducation and
certificationdisclosure and transparencyethics
in businessinvestor protectioninformation
disseminationfinancial literacy

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What makes it workgiving it an industry
statusengage broking fraternity in national
consultation processfair treatment in national
media and public opiniondisincentives for
indisciplineindustry initiatives securities
dealers associations/forums etc.,greater
interaction with the public

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Looking AheadA market well integratedPossibly
a region well integratedA wide bouquet of
financial servicesProviding important linkages
(stock markets, banks/insurance/foreign markets)

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Looking AheadEducating and empowering
investorsGaining confidence and trustof public
authoritiesEnabling domestic institutions
expertise in capital markets

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Looking AheadContribute to the overall
strength of the financial systemWith developing
greater linkages with the global finance

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Thank Youbandi.ramprasad_at_gmail.com91
98201 59618

• EQUITY BROKERAGE INDUSTRY IN SOUTH ASIA