Financial Daily from THE HINDU group of publications
Friday, Aug 05, 2005
Financial Daily from THE HINDU group of publications Friday, Aug 05, 2005 |
|
|
|
|
|
|
|
Markets
-
Financial Services SBI Caps plans retail broking arm in 3 months Priya Nair
Mumbai , Aug 4 SBI Capital Markets is planning to set up a separate subsidiary for retail equity broking within three months. To begin with, the merchant bank will invest Rs 50 crore in the subsidiary, said Mr Indrajit Gupta, Managing Director and CEO. SBI Caps is already offering retail services in 10 branches and plans to add 50 more offices by June 2007 for the retail network. The services would also be offered in other SBI India branches, wherever necessary. SBI Caps is looking at a revenue target of over Rs 100 crore from retail broking in the next three years. "It is actually the downstream side of our capital market services, which include organising IPOs, selling them to investors, and selling debt instruments," he said. On the need for a separate subsidiary, Mr Gupta said that a merchant bank concentrates on knowledge-based services, while retail broking is operation-oriented. Regarding the potential of retail equity broking, Mr Gupta said that the Indian equity market was still not retail-oriented enough. "The equity market in India requires more depth and more spread. It is still concentrated in the hands of a few and there are only a handful of retail investors." A huge retail base will also make sense from the point of view of risk management, Mr Gupta said. "There is plenty of wealth in rural and semi-urban India, which can be tapped." Even SEBI has increased the retail portion in IPOs from 25 per cent to 35 per cent, he added.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
