PEST Analysis of Securities Broking Industry
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Transcript of PEST Analysis of Securities Broking Industry
BY:
HIMANSHU JINDIA JUHI DARGAN
SUKHBIR SINGH
VIDYANAND KUMAR
Securities Broking
“the right destination for financial talent”
IntroductionBroker primarily work as agent for buying and selling of
securities earn commission for each of the transactions
“Broker is an intermediary who facilitates entry & exit in Equity market”
History
• Origin
• Pre-Independence Scenario
• Post-Independence Scenario
Economic Environment
Structure • 191 companies listed under NSE and BSE
• Divided into four regions North – 40% South – 24%East – 5%West -- 31%
Source : CMIE database(Prowess)
Income of the Industry
Source : CMIE database(Prowess)
Trading Statistics of Stock Exchanges
Source : SEBI Handbook 2009
Registered Brokers and Sub-BrokersStock Exchanges Brokers Sub-
BrokersAhmadabad 325 96Bangalore 257 158BSE 984 30059Bhubaneswar 213 17Calcutta 926 84Cochin 435 43Coimbatore 135 19Delhi 375 261Gauhati 103 4ICSE 946 3Jaipur 488 33Ludhiana 301 36
Source : SEBI Handbook 2009
Contd.Stock Exchanges Brokers Sub-
BrokersMadhya Pradesh 174 5Madras 183 110NSE 1243 31328OTCEI 713 19Pune 188 156UPSE 351 3Vadodara 312 37
Total 8652 62471
Source : SEBI Handbook 2009
Shining Stones of the Industry
Major Players
Source : CMIE database(Prowess)
Advertisement
Source : CMIE database(Prowess)
Products
Major Element of Cost
Source : CMIE database (Prowess)
TECHNOLOGICAL ENVIRONMENT
IntroductionDevelopment in information, communication and
network technologies
Created a paradigm shift in securities market operations
Bringing about innovations in product and services
Provide new business opportunities
Insure timeliness and satisfaction in customer service
Technology of NSE• IT set is largest by any company in India
• Use satellite communication technology
• Energize participation from around 200 cities spread all
over the country
• With up gradation of trading hardware, NSE today can
handle up to 15 million trades per day
Source : www.nseindia.com
Types of Trading Environment
Mobile TradingBroking houses are now betting on mobile trading to
boost revenues
Provides a Java application for your cell phone
BSE launched its Mobitrack service
Political and Legal Environment
Why strict rules and regulations are there in stock market?
STOCK MARKET AND SCAM
Harshad Mehta scam (4000 crores) : 1992
Ketan Parekh scam (2000 crores) : 2001
Source : www.subashares.com
SECURITIES AND EXCHANGE BOARD OF INDIA How to become a Stock Broker?
SEBI (STOCK BROKERS AND SUB-BROKERS) RULES AND REGULATION,1992 Registration of stock brokers Registration of sub-brokers
Code of conduct for stock brokers
Code of conduct for Sub-brokers
Source : SEBI Manual, 2007
Cont.Regulation of transaction between clients and brokers
Risk disclosure document
Unique client code
Model tripartite agreement
Dealing by foreign brokers
Source : SEBI Manual, 2007
Bitter & Curative experience in legal frame work
Badla in share market (Badla to Derivatives)
Harshad Mehta Scam and Others.
Settlement Period & Settlement Cycle
Know your customers (KYC Norms)
Source : www.ezineaticles.com
Socio-Cultural Environment
Psychological NervesPeople encourage themselves to invest in stock market
Festivals
Social ResponsibilityProvide the facility of free demonstrations
Limited number of clients under the relationship
manager
Promotional activities for the awareness of the customer
Co-operation with other department and other branches
Should not give fake news to their customers
Contd.Complete information about products and services
offered
Educate about the rules and regulations of SEBI to its
customers
Health of Brokers
Neck inclined to one side causes pain
Headache
Loss in Vision
Stress
Diabetes due to stress
THANK
YOU