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Tuesday, July 19, 2011

The Indian Stockbroker

Having seen one of the worst recessions in living memory 2008-09,the coming turbulence is a reminder of the unique way the Indian retail broking industry functions....big expansions when markets rise and vice versa.

Having spent a comparative amount of time in the rather staid retail banking sector I fail to understand why brand building,advertising,public relations budgets are slashed precisely when they are needed the most?I have not seen any innovation in products in the last 5 years,yet the pressure is on the frontline staff to sell,sell sell.

Why after 15 years of the IT bandwagon we still use it primarily as an esoteric appendage to all the varios facets that make up broking?Its only now that a few of the top brokers are buying CRM software to manage data and still it remains a very individualistic industry.

Some analysts are also bullish and some always bearish so 50% are always right!All one needs is to buy some airtime and say what comes to mind,there are no safety nets for that poor soul who depends on his information on business news channels.

In the Age of Information there is still a huge paucity of the "right"information.IT behemoths may be conquering the American and European shores but here hardly is an application developed for the equity markets.Hubris is evident in the channellization of the whole process

The Indian broking companies are market leaders in their own geographical areas but yet to make a dent on a National basis and yet the whole of South Asia awaits...

Is there a Leadership crisis in India,I for one always keep seeing the same old faces and they keep saying the same old things.Are our education systems such that we are afraid to say what we feel and look for the comfort of the herd?