E-broking in India and the shortcomings faced

E-broking in India is still in its infancy stage with a daily turnover of around

Rs.10 crores which is just 1% of the gross turnover of the BSE and NSE combined; pegged at around Rs.9,000 to Rs.10,000 crores a day. As of today there are about ten to fifteen big players in the market. Indiabulls, Investsmart, 5paisa.com are the dotcom players while there are many online brokers such as Motilal Oswal, Geojit, Share khan, India Info line, Kotak Street and others. Moreover, the number of small private firms is just endless. There is one in almost every locality, especially in the metros and small towns.

As mentioned earlier in the article, E-broking in India still being in the nascent stage, most of the big players concentrating on achieving two primary goals, the first one being broadening of the overall customer base; attracting new investors while maintaining their existing clientele. Secondly, establish brick-&-mortar offices in locations that are bound to catch the eyes of prospective investors. One of the obstacles that they face today is the poor internet connectivity and infrastructural problems. Breakdowns in the systems occur so very frequently that at times, major losses have to be borne by the firms catering to E-broking in India. This also leads to defamation and loss of goodwill for them.

Though these brick-&-mortar outlets are set up frequently, registered investors also have the convenience of trading from their own homes and offices. Also, they can even use the option of putting their orders thru by employing the traditional offline method. This concept is one that is widely used in India as there is a still lot to be done to change the mind-sets of investors from offline to online. Hence, this click-&mortar concept as it is popularly known is expected to continue for a long time. At least until E-broking in India increases to around 10-15 percent of the gross daily trading.

E-broking in India and the shortcomings faced

By: Sharad Gaikwad

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