Online Brokerage Market Research

Document Sample
Online Brokerage Market Research Powered By Docstoc
					Brochure
More information from http://www.researchandmarkets.com/reports/354853/




Indian Retail Brokerage Market: An Analysis

Description:    This report analyzes the Indian retail brokerage industry, taking into account the health of the
                capital markets and the intensity of competition among the brokerage companies. Michael Porters
                Five Forces Analysis has been employed to understand industry attractiveness. The report covers
                all important segments of the industry and also analyzes the prevailing market dynamics.

                A comparative assessment of the top 11 retail brokerages based on various parameters, such as
                product portfolio and pricing, is the key highlight of the report. The major growth drivers for
                brokerage revenue and trading volume are:

                - Fall in brokerage fees
                - Adoption of technology — screen-based trading, electronic matching, and paperless securities
                - Centralized operations, effective risk management, and control on large interconnected operations
                spanning multiple locations.
                - Increasing access to capital and the ability to provide margin finance



Contents:       1. Overview of the Indian Retail Brokerage Industry
                 1.1 Industry Definition and Segmentation
                 The Indian retail brokerage industry consists of companies that primarily act as agents for the
                buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a
                commission or transaction fee basis.

                 It has two main interdependent segments: Primary market and the Secondary market

                 1.2 Timeline: Evolution of the Retail Brokerage Market
                 It explains the evolution of the brokerage market in three phases: pre1990, 1990-2000, post
                2000.

                 1.3 Market Size and Characteristics
                 The Indian retail brokerage market is showing phenomenal growth. The total trading volume of
                brokerage companies has increased from US$1239.1 billion in 2004 to US$1492.1 billion in 2005,
                and is expected to reach US$6535.7 billion by 2015.

                 Some of the main characteristics of the brokerage industry include growth in e-broking, growing
                derivatives market, decline in brokerage fees etc.

                 2. Porters Five Forces Analysis
                 2.1 Buyer Power
                 Lack of Expertise Curtails Bargaining Power
                 Retail investors often lack the knowledge and expertise in the financial sector that calls them to
                approach the broking houses.

                 Low Product Differentiation Proves Beneficial
                 The retail broking services provided by the various companies is homogeneous with very low
                product differentiation. This allows customers to enjoy a greater bargaining power.

                 2.2 Supplier Power
                 Increased Dependence on IPOs
                 There is a growing dependence of corporates on broking houses with the rising number of IPO’s
                coming to the market.

                 2.3 Intensity of Competition
                 Move towards consolidation
                 Lot of brokerage companies are moving towards consolidation with the smaller ones becoming
                either franchisees for the larger brokers or closing operations.
 Increased Focus of Banks in Retail Broking
 Various foreign banks like ABN Amro and others are planning to enter the Indian retail brokerage
industry.

 Online Trading Competes with Traditional Brokerage
 There is an increasing demand for online trading due to consumer’s growing preference for
internet as compared to approaching the brokers.

 2.4 Threat of New Entrants
 Entry of Foreign Players
 New forms of trading including T+2 settlement system, dematerialization etc are strengthening
the retail brokerage market and attracting foreign companies to enter the Indian industry.

 2.5 Threat of Substitutes
 Alternative Investment Options
 Various alternative forms of investment including fixed deposits with banks and post offices etc act
as substitutes to retail broking products and services.

3. Comparative Assessment
3.1 Company Profiles
It includes company profiles of the following companies.
3.1.1 ICICI Securities Ltd. (www.icicidirect.com)
3.1.2 Kotak Securities Ltd. (www.kotaksecurities.com)
3.1.3 Indiabulls Financial Services Limited (www.indiabulls.com)
3.1.4 India Infoline (www.5paisa.com)
3.1.5 IL&FS investmart Limited (www.investsmartindia.com)
3.1.6 SSKI Ltd. (www.sharekhan.com)
3.1.7 Motilal Oswal Securities (www.motilaloswal.com)
3.1.8 Fortis Securities (Religare) (www.fortissecurities.com)
3.1.9 Karvy (www.karvy.com)
3.1.10 Geojit Securities (www.geojit.com)
3.1.11 HDFC Securities (www.hdfcsec.com)

 3.2 Strengths and Weaknesses
 It includes strengths and weaknesses of each of the leading players in the market
 3.3 Value Indicator Matrix
 The various companies profiled are compared on the basis of product, price, service and value
proposition.

3.3.1 Product Comparison
3.3.2 Pricing Comparison
3.3.3 Service Comparison

3.4 Value Proposition
The competitive positioning of various firms is studied on the following parameters
Website: Ease of use
Pace of transaction execution
Trading Terminal facility
Tie up with banks
Branch network
Customer service

Appendix: Glossary
National Stock Exchange
National Securities Clearing Corporation Ltd.
Demat Trading
T+2 settlement system
The Securities Contracts (Regulation) Act, 1956
National Multi-Commodity Exchange of India Limited (NMCEIL)
Clearing and Settlement Processes
Clearing Banks
Depositories
            National Securities Depository Ltd
            OTC EXCHANGE OF INDIA
            Multi Commodity Exchange of India Ltd


            Tables
            Tab 1.1 Process of flow of information
            Tab 2.1 Market Share – Top ‘N’ Brokers Percent 1995-2005
            Tab 2.2 Number of Online Traders 2000-2005
            Tab 3.1: Product Offerings
            Tab 3.2: Comparison of Fees
            Tab 3.3: Mode and Type of Options Across Brokers
            Tab 3.4: Additional Services Provided by Brokers
            Tab 3.5: Customer Service Support
            Tab 3.6: Value Proposition

            Figures
            Fig 1.1 Flow of information, money and securities
            Fig 1.2 Timeline: Evolution of the Retail Brokerage Market
            Fig 1.3 Brokerage Revenue and Trading Volume 2004-2015E
            Fig 1.4 Secondary Markets: Changing Structure 2000-2005
            Fig 1.5 Trends in Brokerage Fees 2004-2015E
            Fig 1.6 Market Capitalization/GDP 1995-2005
            Fig 1.7 Internet trading volume, 2000-2001 to 2004-2005
            Fig 2.1 Breakdown of Annual Household Savings in India, FY00-FY04




Ordering:   Order Online - http://www.researchandmarkets.com/reports/354853/

            Order by Fax - using the form below

            Order by Post - print the order form below and sent to

                         Research and Markets,
                         Guinness Centre,
                         Taylors Lane,
                         Dublin 8,
                         Ireland.
                                                           Page 1 of 2

Fax Order Form
To place an order via fax simply print this form, fill in the information below and fax the completed form to 646-607-
1907 (from USA) or +353-1-481-1716 (from Rest of World). If you have any questions please visit

http://www.researchandmarkets.com/contact/

Order Information
Please verify that the product information is correct.


               Product Name:           Indian Retail Brokerage Market: An Analysis
               Web Address:            http://www.researchandmarkets.com/reports/354853/
               Office Code:            OC8HPIQPSVUQU

Product Format
Please select the product format and quantity you require:


                                   Quantity

               Electronic:               EURO €1,230.00




Contact Information
Please enter all the information below in BLOCK CAPITALS


      Title:                  Mr              Mrs            Dr          Miss             Ms         Prof

      First Name:                                                  Last Name:

      Email Address: *

      Job Title:

      Organisation:

      Address:

      City:

      Postal / Zip Code:

      Country:

      Phone Number:

      Fax Number:

     * Please refrain from using free email accounts when ordering (e.g. Yahoo, Hotmail, AOL)
                                                              Page 2 of 2

Payment Information
Please indicate the payment method you would like to use by selecting the appropriate box.

          Pay by credit card:                     American Express

                                                  Diners Club

                                                  Master Card

                                                  Visa
                                           Cardholder's Name

                                           Cardholder's Signature

                                           Expiry Date

                                           Card Number

                                           CVV Number

                                           Issue Date
                                           (for Diners Club only)




          Pay by check:                    Please post the check, accompanied by this form, to:

                                           Research and Markets,
                                           Guinness Center,
                                           Taylors Lane,
                                           Dublin 8,
                                           Ireland.


                                           Please transfer funds to:
          Pay by wire transfer:
                                           Account number                   833 130 83
                                           Sort code                        98-53-30
                                           Swift code                       ULSBIE2D
                                           IBAN number                      IE78ULSB98533083313083
                                           Bank Address                 Ulster Bank,
                                                                        27-35 Main Street,
                                                                        Blackrock,
                                                                        Co. Dublin,
                                                                        Ireland.


     If you have a Marketing Code please enter it below:


           Marketing Code:


      Please note that by ordering from Research and Markets you are agreeing to our Terms and Conditions at
     http://www.researchandmarkets.com/info/terms.asp



                                              Please fax this form to:
                                  (646) 607-1907 or (646) 964-6609 - From USA
                          +353 1 481 1716 or +353 1 653 1571 - From Rest of World

				
DOCUMENT INFO
Description: Online Brokerage Market Research document sample