The Hindu Business Line : Bajaj Capital eyes share broking, depository space

New Delhi, June 27 Bajaj Capital Ltd, a company primarily engaged in distribution of financial products, has decided to diversify into stock broking and depository services to tap the growing segment of investors who prefer to take own control of their investments and resort to online trading of shares.

Plans are afoot to launch an investment portal during diwali this year for this purpose. The stock broking foray would be done through a subsidiary company —Bajaj Capital Investor Services.

“We will do both online and offline share broking. Pilots have already commenced in 10 cities for offline broking. We do not want to be a deep discount broking house. I do not want to play the market on price”, Mr Rajiv Deep Bajaj, Managing Director, Bajaj Capital, told Business Line.

Mr Bajaj does not see Internet as threat to the company’s business model, but underscored the need for making investments in technology. “If you do not invest in technology based selling platforms, you are risking the growth possibilities for the company”, he said

He said Bajaj Capital was in the process of transforming into non-banking financial advisory house with an independent and open-architecture business model. “We do not have any proprietary products distributed through our network. We are also not into portfolio management services,” Mr Bajaj said.

In the recent years, about 25 per cent of the company’s total revenues came from financial planning based sales.

Asked whether Bajaj Capital plans to tap the capital market with an initial public offering (IPO), he replied in the negative.

Large corporate houses have recently announced plans to make huge investments into retailing of financial products and services across the country.

“We definitely want to grow our market share in distribution space and are committed to growth of our distribution network.

“We will continue to invest, but are looking at alternative approaches (to fund investments),” he said.

Bajaj Capital currently has close to 155 distribution points (investment centres) in 70 cities.

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Bajaj Capital eyes share broking, depository space