The foreign broking community has a huge opportunity to participate in emerging Indian financial market.
A large number of Asian products can be introduced in India as there is a big scope for the derivative products to be traded in Indian market, the market experts said.
Participating in a panel discussion on the “Opportunities for Hong Kong and Brokers overseas terminals in India” organised by the National Stock Exchange (NSE), Vidhu Shekhar, vice president, NSE said that there is very big scope for Asian products in India. “There is a scope for the derivative products being traded in India”, he said.
He said that there is growing importance of domestic institutional flows as the bourses are getting transformed from a small broking exchange to the institutional exchange. The internet trading last calender year was as high as 9% of the total trade which has come down to 6% in the last three months.
It may be recalled that NSE has made it to the top 10 club of gloal derivatives bourses. It emerged as the fastest-growing bourse as its total traded volumes nearly doubled in 2007.
He said that it is the retail participation which is driving down the revenue of the stock exchanges. The retail participation includes the High Networth Individuals (HNIs).
However, the share of the top 50 players in the market is more than 50%. He said that the share of FIIs in the open interest is 50% comparatively higher than the retail investors.
Taking a cue from Shekhar, Jayesh Mehta, co-head equities, DSP Merrill Lynch said that the foreign bonds can get listed in India. There is a big scope for the overseas market participants in the Indian market, he siad.
Summing up the discussion, Vallabh Bhansali, chairman, Enam Securities said that the share of the total household saving towards securities market directly and indirectly is presently around 5% which can be further enhanced.
This share was 16% in the year 1993 which has come down due to several reasons. “There is opportunity both for the domestic and oversea brokers to tap the opportunity.
The average commission in India may be small. “But, India is a competitive market”, he said.
