The ever growing participation in India’s stock and commodities market has prompted foreign companies to set up shop here. Close on the ranks of e-trade, Citigroup, DSP Merrill Lynch, everyone seems to be anxious to ride the tide first. With Indian stock markets among the most technologically advanced in the world, it makes natural business sense for foreign brokerages to integrate their operations with the Indian stocks.
Sharekhan being among the few Indian brokerages to start online share trading, been expanding its reach but with growing competition from established, big and integrated players like icicidirect.com, hdfcsec.com, kotakstreet.com and idbipaisabuilder.in, it faced difficulty on various counts like competing with a national established player, tying up with a bank of online fund transfer, economies of scale and financial security perception in the minds of customers viz-a-viz, the national level banks.
According to newspaper reports, leading the race is Citigroup which wants to ramp up its Indian presence in a huge way.
Online trading primarily is a highly capital and technology intensive business, which is a major entry barrier to the new entrants, and already established players in India have already or are looking for foreign partners.
Entry of another foreign player would mean greater choice for Indian investor coupled with the quality research reports, latest technology and systems, and competitive brokerage rates.
Find this article at: http://www.labnol.org/india/corporate/foreign-brokerage-prowl-on-sharekhan-lion/18/
