Dun and Bradstreet India (D&B India) is pleased to release the third edition of its publication India’s Leading Equity Broking Houses. The overwhelming response received for the inaugural edition of the publication, released in 2007, positioned it as a unique and comprehensive ready-reference tool of the broking industry; prompting us to launch ‘India’s Leading Equity Broking Houses 2009’.

In 2008, the industry was marked by a rise in business transactions, sharp drop in brokerage fees and transaction costs, diversification through new products and implementation of stringent rules for boosting investor confidence. Policy initiatives on the part of SEBI in the areas of IPO grading, trading in currency futures, introduction of mini contracts in equity indices and option contracts with longer-life tenures, etc were introduced in order to strengthen the system. Additionally, tools such as direct market facility (DMF) and the proposed algorithmic trading facility are also expected to generate interest among the various stakeholders in the near future.

FY08 was a good year for the stock markets with multiple developments across the spectrum that had a positive impact on the equity broking sector. In FY08, the average market capitalisation of companies listed on the Bombay Stock Exchange (BSE) stood at Rs 53.5 trillion, almost 9% more than the country’s GDP during the same year. The market capitalisation to GDP ratio increased from just 21.8% in 2002-03 to more than 100% during 2007- 08. FY08 also saw larger issues make way into the market, with more than 30 mega issues (issue size of above Rs 3 billion) hitting the stock exchanges. Expectedly, the average size of an issue saw a big increase in just a year - increasing from Rs 2,700 million in FY07 to Rs 7,020 million in FY08. The year also saw retail investors show a higher appetite for investing in stocks. The percentage of household savings in shares and debentures increased from 5.1% in FY06 to 10.5% in FY08 – a clear indication of the heightened levels of interest of retail investors.

In this background, the publication will play an important role in analysing trends, tracking developments and disseminating useful information to the various constituents of the broking industry. Comprehensive data and profiles on the major players presented in this publication would surely increase the depth of information and knowledge. I hope you enjoy reading ‘India’s Leading Equity Broking Houses 2009’ and look forward to receiving your feedback and suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet