| The words ‘stock broking services’ | | | | clients from a vast international network—a |
| should be enough to let you know—there’s | | | | host of big foreign institutional brokerages have |
| a lot of money in this business. Institutional broking | | | | entered the retail broking business in India in |
| allows countries to rope in Foreign Institutional | | | | recent times. |
| Investments (FIIs) and even domestic institutional | | | | But larger international players have anything |
| investors. | | | | between 60 to 80 people for their institutional |
| This is why a clutch of home-grown retail | | | | equity team and it would be a difficult task to |
| brokerages are setting up institutional broking | | | | attract big institutional business from these |
| businesses. Even foreign brokerages have been | | | | players, admit experts. |
| sewing up alliances to grab a share of India’s | | | | Another factor which is driving these firms to |
| retail broking pie. | | | | look for institutional business is the fact that retail |
| Religare Enterprises has hived off institutional | | | | brokerage outfits are getting a large share of |
| equities as a separate business unit, to cater to | | | | revenues from pure equity broking—as it |
| the investment needs of leading corporate houses | | | | covers sectors like FMCG, Hotels, Media, Pharma, |
| and institutions. Backed by incisive research, this | | | | Auto, Cement, Steel Pipes, Logistics, Telecom, |
| division would like to be seen as a one stop | | | | Construction etc. The volume of money flowing |
| investment gateway and knowledge repository | | | | on a daily basis in these kinds of investments is |
| for its clients, servicing their unique and | | | | truly large—thousands of crores is a pretty |
| sophisticated needs. | | | | safe estimate. |
| Similarly, other retail brokerage firms are floating | | | | All this points to a single, simple fact—there are |
| joint ventures exclusively aimed at institutional | | | | enough money-making opportunities, if you are |
| clients. They are also setting up institutional desks | | | | precise enough with your investments. It all |
| in major cities like Mumbai, Chennai, Delhi and | | | | depends on how you make your investment |
| Kolkata and they are in the midst of hiring senior | | | | work for you. Even with the state of the market |
| executives for their institutional brokerage firms. | | | | as it is today, investment broking is a lucrative |
| That’s the trend that seems to be developing | | | | option. If you aren’t impressed just yet, wait |
| now—organisations are hiring more people for | | | | and watch over the next few |
| their institutional business. Others, who have | | | | years—there’ll be some jaw-dropping |
| merged with larger international companies, will get | | | | numbers for you to ponder over! |