Stockbroking: There are billions in this trade

Old-style stockbroking firms have morphed into gleaming Wall Street-style powerhouses employing economists, accountants, analysts, and specialists Very few monitors of the Indian economy could have imagined that Indian companies like Infosys Technologies, Tata Consultancy Services and others would emerge from the cloistered corporate world of India to become star scrips on Nasdaq (National Association of Securities Dealers Automated Quotations), the technology-heavy US stockmarket index. But these scrips were merely the vanguard of at least two dozen blue-chip Indian companies which are now listed on Nasdaq. India’s two active stock exchanges are now dealing with big numbers and big money with stockbrokers dealing in billions rather than in millions. Their characteristic tiny booth-like offices boasting only a telephone have metamorphosed into gleaming avant-garde Wall Street-style powerhouses employing economists, chartered accountants, financial analysts, researchers, and industry specialists. Quite obviously stockbroking firms and stockbrokers are redefining themselves as the business of advising buyers and sellers of financial paper and of facilitating the transaction (‘broking’) becomes more complex and voluminous. The National Stock Exchange or NSE (inaugurated on July 23, 1994) provides nationwide trading facilities accessible to investors all over the country with the automated, screen-based trading system using state-of-the-art technology making stockmarket operations more transparent. Simultaneously with foreign financial institutions such as Morgan Stanley and Jardine Fleming having entered the Indian stockmarket, stockbroking has become more professional. Today’s progressive stockbrokers have all their operations computerised and employ qualified industry specialists to advise on buying and selling of stocks. The Securities and Exchange Board of India (SEBI) has been empowered by an Act of Parliament to protect the rights of investors and ensure the promotion and regulation of the capital markets. The Institute of Chartered Accountants of India (ICAI), New Delhi, conducts its chartered accountancy programme for Plus Two level school leavers through a foundation course and directly for graduates (except fine arts graduates). Finance managers may be MBAs with specialisation in finance from reputed institutes of management or from business administration departments of major universities. Some other useful learning programmes for the stockbroking business are: Institute of Company Secretaries of India, New Delhi, offers a postgraduate membership course in capital markets and financial services Institute of Capital Market Development, New Delhi, offers a one-year postgraduate programme in fundamentals relating to capital market development All India Centre for Capital Market Studies, Nasik, Maharashtra, offers a one-year postgraduate programme in capital market studies in collaboration with the Bombay Stock Exchange Training Institute, leading to a diploma from the University of Pune Stock Exchange Building, Mumbai, offers certificate courses run throughout the year Institute of Financial and Investment Planning, Mumbai, offers a one-year correspondence-cum-lecture series course leading to a diploma in financial and investment planning Institute of Chartered Financial Analysts of India (ICFAI), Hyderabad, offers a chartered financial analyst equity research programme The Orion Institute of Capital Market, New Delhi, offers a one-year diploma programme in financial systems and investment management With a large number of foreign financial institutions entering the Indian stockmarket, courses in forex…