Q. What according to you can be done to give further impetus to the broking industry? Where do you see the broking industry three years down the line?

A. In India currently the cost of Trading (Impact cost) is very high due to the composition of very high rate of Securities Transaction Tax. If STT is reduced by the Finance Minister in the budget to be announced in the first week of July, then this would give a big impetus to the broking Industry as the turnover is likely to increase substantially resulting in increased depth and liquidity in the market.

Creating a vibrant and liquid spot and future bond market can be another step in the right direction which would give further impetus to broking industry as it would enlarge their service offerings. This step would also help in making India as an important international financial center. Steps like Introduction of Euro rupee, Pound rupee and Yen rupee contracts, allowing NRI’s and FII’s to participate in Indian currency exchanges and commodity exchanges. Introduction of options in commodities and currency exchanges, extension of trading hours are some of the steps which can be taken to give boost to the Indian financial markets and in turn the Broking Industry.

Three years down the line we see the broking industry as much matured and more sophisticated. We expect lot of consolidation happening in the industry and finally big broking houses would remain in the system, who can afford high cost of infrastructure and manpower. We expect the volumes to more than double from the present level three years down the line.

Q. Do you see the regulator’s decision to arm institutional investors with the Direct Market Facility (DMF) as detrimental to the broking industry?

A. DMF (Direct Market Facility) is provided by most of the International exchanges and the regulator’s decision to arm the institutional investors with DMF is a step in a right direction, as it will increase the comfort level and facilitate the faster execution trade for FII’s. In our opinion it is nowhere detrimental to the broking industry rather it will increase the transparency in the trading for FII’s.

Q. Your views on the emergence of new exchanges like SME, Indian Energy Exchange, MCX-SX etc in the country and how these new exchanges will impact the industry.

A. Emerging new exchanges like SME, Indian Energy Exchange, MCX-SX etc are in line with the emerging needs of the industry and a lot of potential is there for these exchanges to grow. These new exchanges will bring more competition, innovation and efficiency in the various trading platform they would offer.

Q. Is your company planning to enhance its distribution network across the country? What are the key regions that you would look at in order to expand your reach?

A. Yes, we have already reached to about 180 offices, in around 400 cities of the country and we are opening almost one office everyday in some part of the country. Currently we are focusing to increase our distribution reach in Western and Southern India.

Q. In line with the apparently positive market sentiments, do you see the IPO/primary market making a comeback in the near future (3-6 months)?

A. Normally, IPO markets starts picking up once the secondary market shows the definate sings of revival. Currently it appears, that the worst is over and market is in long term bull run and in our opinion the IPO/ primary market has started showing sings of revival as number of PSU’s and some of the companies are preparing for IPO’s and in next to 3-6 months, we should be seeing some of the these companies coming up with their initial Public Offerings (IPO’s).