Broking Advisory Services

At PIVOT, we are tuned to the fact that India is home to some of the world’s best practices in its capital markets, thanks to the initiatives of the Government, SEBI, RBI, Exchanges, Clearing Corporations and the Intermediaries.

In India, Stock Exchange members service retail and / or institutional (both domestic and foreign) investors. Over the last decade, the institutional segment has been growing steadily with greater inflows from FPIs as well as the growth of domestic institutions or emergence of new ones. Our activities in developing the ecosystem has led to our clients set new benchmarks while also developing competencies and competitiveness vs well established Global Intermediaries.

FPI Regulations 2014 enabled a new class of foreign investors to be permitted to invest in India. These have been classified as category III in the said Regulations. In our view, the advent of Category III Investors also led to the slow demise of the P-note structures as investors decided to register directly, many being now classified as Category II or III.At PIVOT, we believe that Category III holds the maximum potential for inflows in India in the coming years.

Since July 2014, 860+ Category III FPIs have registered with SEBI (as of January 2017). This fast-growing new class of investors and those who are at various stages of inquiry/entry will need world class quality services of Institutional, brokers, Custodians, Tax firms, Banks and other intermediaries. Most of the category III investors are normally single country / country dedicated funds / Institutions exposed to global standards of doing business. To most of them the Indian Capital Market access seems complicated, Taxation process vexing, costs high and the lack of adequate number while world class providers. Such perceptions / experiences may mar the inflows and growth of FPI segment.

There is an urgent need to develop a world-class eco-system in India that will address the requirements of this segment and improve inflows. It’s also pertinent to note that some of the India Incorporated Custodians, Tax firms, Banks, Legal Firms and a fewer Brokerage firms have developed services for this segment.

PIVOT is the only Consulting firm in India to have developed and successfully implemented an attractive packaged solution for a FPI with plans to access India in early 2017. This helped improve the attractiveness and ease of doing business in India.

The sharp rise in the number of Category III FPIs could be due to a combination of:

  1.  Ease of doing business in India
  2.  India growth story vs the slower growth in other countries
  3.  Relatively higher returns from Indian markets vs the other markets
  4.  Proactive roles of policy makers, regulators, exchanges and intermediaries
  5.  Increased information flow and visibility

Some of the Institutional Broking Members have evolved / are evolving in their services to cater to this segment. However, a lot needs to be done by broking members, who see this segment as the new revenue stream. In PIVOT’s view the Broking Institutions in India play a PIVOTAL role in attracting FPIs.

 The key differentiators Institutional Broking firms in India members employ while servicing FPIs are:

  1.  Offering diversity of products
  2.  Providing state of art trading platforms with intelligent algorithms
  3.  Ability to provide DMA
  4.  Setting up overseas offices enabling doorstep service for clients
  5.  Display better understanding of global cues and trends and the resultant impact on the local markets
  6.  Enabling access of global research to domestic clients
  7.  Position diversity of corporate access (listed and un-listed companies) for institutional clients
  8.  Hosts Investor conferences and roadshows at both domestic and overseas locations
  9.  Aims at international ratings and rankings

These factors need to be taken cognizance of for those interested in building in the said revenue space.

PIVOT BROKING ADVISORY SERVICES

We recognise that more initiatives are needed to build a world class capital market ecosystem, especially in the Brokerage service space, to support the growth of the capital market, to the benefit of the foreign investors and India.

With the confidence and deep experience of having delivered world class solutions and implementation of strategies, we at PIVOT, now extend such solutions to Indian Brokerage Firms, to be world class players and compete with the best in class, to the advantage of Category II and Category III investors. Our decades of experience in the Broking space and connectivity adds richness of our deliveries. We believe there is an urgent need and scope to develop this segment, as we foresee a much faster inflow in the Category II & III FPIs.

We assist Brokerage firms in developing business strategies and revenue streams, become more competitive, develop world class solutions, improving Operational efficiencies, to be a part of the ecosystem that addresses the requirements of Category II & III investors. We cover the aspects as outlined at KEY DIFFERENTIATORS.

We guide our clients in turning their challenges into opportunities. Our clients find out strategic alternatives to existing processes and it helps them to be stronger compared to their peers as well compete with them more effectively.

Besides Broking Advisory Services in Category II and III we assist:

  1.  In FPI related workshops covering marketing, sales, roadshows, tax solutions
  2.  Our IT solutions cover trading platforms and DMA for FPI clients
  3.  At the operational aspects, we assist in efficiency improvements, process re-engineering, cost saves opportunities, manpower optimisation, client surveys etc.

Write to us at manish@pivotmgmt.com for a more detailed discussion and partnership.