Trading, IPO & MF Transactions Major Biz For Stockbrokers

Kolkata: Stockbrokers are morphing. A whopping 67 per cent of offer IPOs and a compelling 53 per cent offer mutual fund transactions. Data such as these form part of a survey by Dun & Bradstreet (D&B), the organisation that has just rolled out its maiden study of India's equity broking houses. Trading, IPOs and MFs happen to be the top three products that they provide their clients. Nearly 36 per cent of the companies surveyed trade in cash and derivatives, while 27 per cent are solely in the cash market. About 20 per cent trade in cash, derivatives and commodities. Some of the other major products that brokers are offering are Internet-based trading, depository services, corporate research and arbitrage.
Company research is another lucrative proposition for brokers.. Further, value-added services, including fundamental and technical analysis as well as investment banking, are also provided by some. In the past few years, brokers have newer opportunities in the form of commodities futures, distribution of insurance products, wealth management etc. The western region, however, does clearly score over the others in terms of sheer geographical spread. A high 52 per cent of the nearly 400 firms sampled are there, the maximum representation. The north, south and east account for 24 per cent, 13 per cent and 10 per cent respectively.

The country's broking community seems to have took advantage on the growth of the asset management industry, D&B has commented while referring to the growth trends displayed by fund houses. More than 50 per cent of the brokers sampled deal in MF investment services. The average growth in assets under management in the last two years is roughly 48 per cent. In terms of providing MF services, the western region dominates the scene with 49 per cent of the total.