BOTTOMLINE: They have transformed their images and also offer schemes besides equity

Brokers go in for makeovers to attract investors

Nitin Mathur

The archetypal image of a stockbroker is one of a shabbily dressed person, who speaks rudely, and waits to take advantage of your ignorance of investment techniques. But how would you feel if he turned up smartly, spoke politely and guided you to making rational investment decisions, offering you a range of investment products, instead of forcing equity down your throat.

Low trading volumes as a result of withdrawal of badla trading and introduction of rolling and uniform settlements have badly hit brokers. To survive, they have been forced to not just improve their services but undergo an entire change of image.

Some of them have graduated to being called ‘investment brokers,’ where they offer various products like mutual funds, fixed deposits, bonds, debentures and post office schemes besides equity.

ICICIDirect.com, the online broking arm of ICICI, has been doling out freebies to its clients. First, the shareholders of ICICI were extended the facility to transact in the equity markets up to Rs 10 lakh free of cost through the website. Later on, account holders of ICICI Bank and rediffmail.com users were also extended this facility.

A company source said, “The move is aimed at widening our customer base which primarily constitutes of retail investors. We hope that the scheme will induce investors to start off online trading.”

OJ Financial Services, a Delhi-based stock broking company with memberships of the National, Mumbai and Delhi stock exchanges, has re-oriented itself to become an ‘investment broker’. The broking house has diversified its portfolios, offering bonds, debentures, corporate fixed deposits, mutual funds, life and general insurance products and post office schemes.

Company chairman Arun Gupta said, “We have already sold about Rs 51 lakh worth of bonds from the National Highway Authority of India (NHAI). Besides, we have sold life insurance policies with high premiums for Prudential ICICI and also started vehicle insurance. Our aim is to broaden the customer base and provide them all the financial products through a single window.”

Indiabulls.com, an online stock broking site, is focussing on training the investors through seminars on derivatives products and concentrating on better customer relationship management.
Indiabulls.com chief executive officer Sameer Gehlaut said, “We operate in a niche market of high networth clients. The aim is to maintain a close relationship with each client. We have appointed relationship managers who act as family doctors providing one point contact and personalised service to our clients.” The financial portal also offers other financial products like mutual funds, bonds and debentures.

The IL&FS-promoted broking site InvestmartIndia.com has sharpened its focus on debt and fixed income instruments and recently launched a mutual fund advisory services product - iPreserve. The broking firm launched a fortnight long festival christened ‘Investfest’ to promote these investment options.

Rajesh Gupta, head of the northern region said, “We are seeking inquiries from retail investors who are interested in risk-free and fixed income investment instruments. The idea is to attract new clients and develop a good relationship with them to get repeated business.”