Markets

All players can’t be painted with the same brush as Karvy: Edelweiss

KR Srivats New Delhi | Updated on December 10, 2019 Published on December 10, 2019

Rahul Jain, Executive V-P, Edelweiss Broking   -  Bijoy Ghosh

Edelweiss Broking says it has registered 35% growth in client additions

Edelweiss Broking sees no major adverse impact on its operations post the Karvy scandal, and the broking house, in fact, claims that it is adding clients at a faster clip now.

Part of the reason for this strong growth is the migration of clients from other broking houses as they repose more faith in Edelweiss’ client servicing and risk management capabilities, said Rahul Jain, Executive Vice-President & Head — Personal Wealth Advisory.

“Karvy was an unfortunate incident. It has shaken investor confidence to some extent. The regulator has taken proactive steps and acted fast. The rest of the sector cannot be painted with the same brush (as Karvy). We are, in fact, getting a lot of requests from clients for opening accounts. We are seeing 35 per cent growth in client additions,” Jain said.

Edelweiss Broking, which is part of Edelweiss Global Wealth Management, one of the fastest growing wealth management firms in the country, has never pledged clients’ shares or securities to raise money, he said.

“At Edelweiss, we have been proactively reaching out to clients in terms of communication. Besides SMS and e-mails, we have also been using relationship managers to reach out to clients. We have always kept clients and their interest at the centre,” he said.

New additions

Asked if the new client are ‘new to securities market’ clients or those moving away from other broking houses, Jain said that it is a combination of people moving to more recognised wealth managers as part of their flight to safety and some who are new to the securities market.

“Part of the reason for our 30-35 per cent growth is what is happening in the industry. I don’t think the buoyancy in the markets is the sole reason for such fresh flow of account openings for us,” he said.

He also said that Edelweiss Broking does client scoring at individual level, asking them how they rate the relationship managers, advisory and products offer, etc. A client rates the platform and gives a happiness score, which is measured as sentiment index. “This index has been growing consistently for us in the last 4-5 years. This is reflective of the trust reposed on us. Now, we have graduated in terms of thinking from the clients perspective,” Jain said.

Jain added that Edelweiss Broking has strong risk management systems to ensure that there is no misuse of clients funds or securities. “What we have been doing in terms of processes are very tight and more than required. I don’t think we need to do anything more on this front,” he said.

Published on December 10, 2019
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