HSBC Prepares Return to India Equity Broking as Wealth Demand Builds
HSBC is preparing to re-enter India's equity broking market after more than a decade away, responding to greater interest among wealthy customers in equity-related products.
Returning After More Than a Decade
HSBC is preparing to re-enter India's equity broking market after more than 10 years away, Reuters reported citing sources. The bank withdrew from India's retail brokerage and depository operations in 2013, and is now rebuilding its equities business in the country.
The move is a response to increased activity in India's share markets and greater interest among wealthy customers in equity-related products, according to the sources.
Rebuilding Cash Equities and Institutional Broking
The reported reconstruction includes recruiting senior staff for cash equities and institutional broking. One source quoted by the news agency described digital capabilities and retail brokerage as an important element of the plan, pointing to phone penetration and wider direct capital market access.
The same source said Indian customers had shown greater interest in trading overseas markets since the creation of the tax-neutral GIFT City. A second person cited by the news agency said HSBC could introduce retail broking services within the next few months.
A broking licence is already held through HSBC InvestDirect Securities (India), which the bank intends to use for the relaunch. HSBC did not immediately respond to a request for comment.
HSBC withdrew from India's retail brokerage and depository operations in 2013 and is now rebuilding its equities business in the country.
A Wider Institutional Shift
The report follows the Economic Times's March report that Barclays was making advanced preparations to restart its equity capital markets business in India, 10 years after closing the operation as part of a global restructuring.
India as a Key Wealth Market
HSBC has concentrated more closely on Asia and wealth management in recent years, with India identified as a key market. In a recent interview with Indian business news channel CNBC-TV18, HSBC Group CEO Georges Elhedery said the bank planned to increase its investment in India while placing greater emphasis on affluent customers.
In January, the bank received approval to open 20 branches in India, which would bring its total number of branches to 46.
