Stockbrokers spread wings in north region

To capitalise on the boom in the stock market, stockbrokers are flocking to the northern region and spreading in a big way.

The presence of a large number of NRIs, commodity traders, landlords, people with a high disposable income, along with high net-worth individuals, gives an immense opportunity for the broking houses.

Chennai-based Apollo Sindhoori Capital Investments Ltd (a subsidiary of the Apollo Hospitals Group) is planning to open over 75 company-owned branches in Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, among other north Indian states. At present, it has about 50 branches in all major cities of the country.

Vishal Takiar, business development manager, Apollo Sindhoori, Amritsar, said, "There is a huge potential in these areas, but the awareness level among the masses is not up to the desired level. In order to make people aware, we will organise seminars and awareness campaigns. In Haryana, very soon, we will open branches in Panipat, Sonepat, Rohtak, Faridabad, Kurukshetra, etc. There are similar plans for the states like Himachal Pradesh, Uttar Pradesh, and Uttaranchal."

Mumbai-based broking firm Motilal Oswal Securities is looking to acquire a broking house in the north.

Mihir Kothari, head of portfolio management services, Motilal Oswal Securities, said, "The north is a growing market for us. To further consolidate our position here, we are looking to acquire a broking house. We have also received a couple of proposals and sent out some."

Market sources say with competition in the securities trading business getting more intensive, consolidation among brokers is likely to increase.

Also, financial services provider Centrum is planning to expand in the northern region by opening about 20 branches, from the current 13. In Himachal Pradesh, it's looking at the option of opening a branch either in Shimla or in Mandi.

Apart from the above, they have three branches in Rajasthan, and one each in UP and MP.

According to experts, the northern market is no longer the same; there is a huge activity going on even in the small districts.

Indiabulls is planning to further strengthen its presence by opening branches. Company officials said by the end of the year, the firm would have a presence in all the cities in Punjab and Haryana.

Moreover, the newly-started financial services arm of Ranbaxy group, Religare Enterprises, is planning to add another 20 company-owned branches by the end of this year. Most of the new branches would be located in Tier II and Tier III cities. Besides the company-owned branches, it is planning to increase its franchise base.

With a daily turnover of over Rs 500 crore, Ludhiana-based Master Trust Group has received an approval license for providing Portfolio Management Services (PMS) from the Securities and Exchange Board of India (SEBI).

The services will be offered by the newly formed company Master Portfolio Managers Limited, is planning to further expand its operations in states like Jammu & Kashmir, Tamil Nadu, West Bengal, Rajasthan, Orissa and Gujarat.

Not only the brokers of national repute are strengthening their presence by opening new branches, but also regional brokers are joining the bandwagon by setting up new branches in small towns.