For the complete report, get in touch with us at: info@netscribes.com Abstract : Global market intelligence firm, Netscribes, Inc. released its latest report on the ‘Financial Brokerage Market in India 2014’. With declining cash volumes and slow economic growth, investment in the financial sector has been dismal. The economic condition has been the major reason behind the decrease in trading revenues. Rupee volatility coupled with global uncertainties has been instrumental in the decline of investment opportunities in the country. However, new government reforms do place some optimism in the sector and with the onset of new government and rise in flow of foreign funds, financial sector is slated to register healthy growth in near future which will translate into growth in financial brokerage market as well. Netscribes’ latest market research report titled Financial Brokerage Market in India 2014 states that online broking has emerged as a recent trend which facilitates faster and smoother transactions. SEBI acts as a regulatory authority which governs the sector and regulates the rules and criteria for brokers and sub-brokers. Trends like emergence of discount brokers or decline in sub-brokers have also characterized the sector. Amidst dismal scenario, the sector is still reeling towards growth riding on the back of factors such as rising income levels, under penetration of equities, franchisee model fuelling expansion, FIIs and IPO showing strong returns. Table of Contents : Slide 1: Executive Summary Macroeconomic Indicators Slide 2: GDP at Factor Cost: Quarterly (2010-11, 2011-12, 2012-13, 2013-14), Inflation Rate: Monthly (Jul 2013 – Dec 2013) Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly (Oct 2013 – Mar 2014) Slide 4: Lending Rate: Annual (2008-09, 2009-10, 2010-11, 2011-12), Trade Balance: Annual (2010-11, 2011-12, 2012-13, 2013-14), FDI: Annual (2009-10, 2010-11, 2011-12, 2012-13) Introduction Slide 5-6: Financial Brokerage – Introduction Slide 7: Markets in India Market Overview Slide 8: Financial Brokerage – Market Overview, Equity Brokerage Market Size & Growth (Value-Wise, 2012-13 – 2013-14), Brokers in Various Segments (2010-11 – 2013-14), Segmentation (2013-14) Slide 9-10: Stocks – Market Overview, Market Size (Value-Wise, 2010-11 – 2013-14), Total Trading Value (2009-10 – 2013-14), Segmentation (2013-14), Trading Value of Different Markets Slide 11: Commodity Market – Market Overview, Market Size (Value-Wise, FY 11 – FY 14), Segmentation (2012-13), Commodity Exchange Share (2012-13) Slide 12: Currency Market – Currency Derivatives Turnover (Jun 2013 – Jan 2014), Brokers Currency Derivatives (2011-12 – Apr13-Dec13), Currency Futures Trading (Jan 2013 – Jan 2014) Slide 13: Brokerage Structure Slide 14: Undercutting of Brokerage Fee Slide 15: Operating Model Drivers & Challenges Slide 16: Drivers & Challenges – Summa

1. Financial Brokerage Market – India
October 2014

2. 2
SAMPLE
Executive Summary
Market
Drivers & Challenges
Competitive Landscape
Drivers
Rising income levels
Under penetration of equities
Franchisee model fuels expansion
FIIs showing strong return
IPO showing strong return
Trends
Challenges
Rising rate of FD proving to be attractive
Economic uncertainty
Undercutting and consolidation
Key Players
Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
Financial brokerage in the country has witnessed marginal decrease owing to dismal economic conditions
Foreign brokers have penetrated the market and have increased their share to around x1%
Decline in sub-brokers
Personal details of traders become a must have
Growth of online trading
Emergence of discount brokers
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

3. 3
•Macroeconomic Indicators
•Introduction
•Market Overview
•Drivers and Challenges
•Trends
•Government Regulations
•Competitive Landscape
•Strategic Recommendations
•Appendix
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

4. 4
Macroeconomic Indicators (1/3)
11
12
13
14
15
INR tn
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
b2
a2
Q1
d1
c1
b1
a1
2010-11 2011-12 2012-13 2013-14
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
Aug 2013 - Sep 2013
q
p
%
Sep 2013 - Oct 2013 Nov 2013 - Dec 2013
-t
Oct 2013 - Nov 2013
s
Jul 2013 - Aug 2013
r
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

5. 5
Financial brokerage in India is passing through a low due to
combined effect of economic slowdown and uncertainties
• Brokerage in the country has seen marginal decrease
in trading revenues
• Rupee volatility coupled with global uncertainties
have been instrumental in the decline of investment
opportunities in India
• Though, new governmental reforms place some
optimism in this sector with rise in flow of foreign
funds, brokerage showed marginal decline in most
exchanges
Financial Brokerage Equity Brokerage – Market Size & Growth
Brokers in Various Segments Brokers – Segmentation (2013-14)
a3
a4
a5 a6
0
INR bn
2013-14
a2
2012-13
a1
0
Unit No
2013-14*
b10
b12
b11
2012-13
b7
b9
b8
2011-12
b4
b6
b5
2010-11
b1
b3
b2
Cash Equity Derivatives
Note : Data for 2014 is till Aug 2013
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

6. 6
Drivers & Challenges – Summary
Drivers
Rising income levels
Under penetration of equities
Franchisee Model fuels expansion
FIIs showing strong return
IPO showing strong return
Challenges
Rising rate of FD proving to be attractive
Economic uncertainty
Undercutting and consolidation
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

7. 7
Emergence of discount brokers
Decline in sub-brokers
Growth of online trading
Personal details of traders become a must have
Key Trends
Trends – Summary
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

8. 8
SAMPLE
Porter’s Five Forces Analysis
Competitive Rivalry
•text
Bargaining Power of Suppliers
•text
Bargaining Power of Buyers
•text
Threat of Substitutes
•text
Threat of New Entrants
•text
Impact
Medium
Impact
Medium
Impact
Medium
Impact
Low
Impact
High
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

9. 9
SAMPLE
Public: Player 1 (1/4)
Key People
Products and Services
Company Information
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category
Products/Services
c1
p1
c2
p2
Name
Designation
Person 1
D1
Person 2
D2
Person 3
D3
Person 4
D4
Kochi
Head Office
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

10. 10
SAMPLE Financial Snapshot Key Ratios
0
p1
p2
2011
INR mn INR mn
2014
p7
p8
2013
p5
p6
2012
p4
p3
Total Income Net Profit/Loss Particulars 2011 2012 2013 2014
Profitability
Return on Assets
Return on Equity
Return on Common Equity
Margin Analysis
Gross Margin
SG&A Margin
Earnings from Cont. Ops Margin
Net Income Margin
Net Income Avail. for Common
Margin
Normalized Net Income Margin
Asset Turnover
Total Asset Turnover
Fixed Asset Turnover
Accounts Receivable Turnover
Inventory Turnover
Short Term Liquidity
Current Ratio
Financial Summary
• The company incurred a net loss of INR x1 mn in FY 2014, as
compared to net profit of INR x2mn in FY 2013
• The company reported total income of INR x3 mn in FY 2014,
registering a decrease of x4% over FY 2013
Key Financial Performance Indicators
Indicators Value (01/09/2014)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Public: Player 1 (2/4)
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

11. 11
SAMPLE Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
• Text
• Text
Network • Text
New products • Text
Public: Player 1 (3/4)
0%
2014
z
z1
0%
2014
y1
y
Broking and Financial Services
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

12. 12
SAMPLE
•Text
•text
•Text
•Text
T
O
W
S
Public: Player 1 – SWOT Analysis (4/4)
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

13. 13
SAMPLE
Private: Player 2 (1/5)
Key People
Products and Services
Company Information
Offices and Centres – India
Category
Products/Services
c1
p1
c2
p2
Name
Designation
P1
D1
P2
D2
P3
D3
P4
D4
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Mumbai
Head Office
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

14. 14
SAMPLE Shareholders of the Company Ownership Structure
Name No. of Shares held
S1 N1
S2 N2
S3 N3
S4 N4
S5 N5
S6 N6
Total
g3 g4
g2
g1
g8
g7
g6
g5
Private: Player 2 – Shareholding Pattern (2/5)
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

15. 15
SAMPLE Private: Player 2 (3/5)
Financial Snapshot Financial Summary
Business Highlights (1/2)
• The company incurred a net profit of INR 9.6 mn in FY
2013, as compared to net profit of INR 8.1 mn in FY 2012
• The company reported total income of INR 353.1 mn in FY
2013, registering an increase of 6.77% over FY 2012
0
INR mn INR mn
2013
m6
m5
2012
m4
m3
2011
m2
m1
Total Income Net Profit/Loss
Description News
Overview
• Text
• Text
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

16. 16
SAMPLE
Private: Player 2 (4/5)
Business Highlights (2/2)
Description
News
Online Service
•Text
•Text
Activities
•Text
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

17. 17
SAMPLE
•Text
•Text
•Text
•Text
T
O
W
S
Private: Player 2 – SWOT Analysis (5/5)
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT

18. 18
Thank you for the attention
About Netscribes, Inc.
Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives.
Financial Brokerage Market – India report is part of Netscribes’ Retail and Services Series.
For any queries or customized research requirements, contact us at:
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.
Phone: +91 22 4098 7600
E-Mail: info@netscribes.com
FINANCIAL BROKERAGE MARKET IN INDIA 2014.PPT