Global brokerages want retail action

Macquarie, Deutsche, BNP, Citi headed here.

A string of international banks and brokerage outfits "" led by Australia's Macquarie Securities, Deutsche Securities, BNP Paribas, and Citigroup "" are set to enter the fast-growing retail broking business in India.

Some of them plan to pick up minority stakes in established retail stock broking outfits, while others intend to set up shop on their own.

Several domestic retail brokerages, including Anagram Securities, Geojit Financial Services, Angel Broking and Sharekhan are open to the idea of selling minority stakes as they need funds and expertise for their expansion plans.

Most of the global outfits have an established retail network in their home countries, and have been serving their overseas institutional clients in India.

They find in the high networth investors (HNI) and the retail investor community in India a huge market to be tapped. Strategic equity stakes in established retail broking outfits may be the first step before they set up a full-fledged retail network across the country, sources said.

The proposed entry of Macquarie, Deutsche Securities, BNP Paribas, and Citigroup into the domestic broking space comes on the heels of E*Trade's (a leading US-based brokerage) decision to take a controlling stake in IL&FS Investsmart. Another leading player, ABN-AMRO, has also entered the retail broking space.