Challenges for Indian Brokerage Firms/ Foreign Brokerage Firms in India While Indian & Foreign Brokerages within India are desirous of tapping the above segments optimally, the onshore and offshore regulations governing investments made for the NRIs  may seem to be quite complicated and overlapping.

Some of the challenges

  • Stringent onshore regulations which govern inflows/Outflows from NRIs and investing in Indian Capital Markets.
  • Restrictions on Indian/Foreign Brokerage Houses while sourcing business or clients, from the country of residence of NRIs: Solicitation of business from a country where the NRI client resides is governed by the offshore regulatory guidelines, which differ from country to country and is one of the most important issues affecting the NR Business.
  • Multiple operation processes hinder the account set up and maintenance of these accounts, as there are multiple laws governing control and taxation.

Inspite of significant opportunities, Indian & foreign Brokerage firms have had a limited success in offering Indian Equity Advisory Services to NRIs. The impediments to offering advisory services to NRIs based in many countries are:

Lack of understanding of the onshore and offshore regulations

Perceived operational issues

Multiple agencies to deal

Prohibitive travel costs to source customers

Besides, NRI’s being accustomed to superior transaction processes and multiple products in International markets shy away when they don’t see similar processes while investing in India. This increases the challenge for Indian & foreign brokerage firms in India, as also impacts inflows into India.

PIVOT’s Services in NRI space: For Indian Brokerage firms and Foreign Brokerage firms in India, Custodians, DPs Given our in-depth understanding of the Securities Services space as well as the NR space, we excel in drawing up solutions that assist Indian & Foreign Brokerage firms to set-up or enhance their NR business, especially in the Securities services and Brokerage segment. We offer constructive and creative solutions  to achieve a significant increase in the value of their business.