Stock trading system
Indian industry has now really taken off and this fact has been acknowledged globally. Liberalization has eased restrictions and foreign companies are freely gaining access to India. Indian courses in stock exchanges are now dealing with big numbers and big buyers. The capital markets are undergoing transformation. Today's progressive brokers deal in billions rather than in millions. Instead of being stuck in tiny booth-like offices with a telephone, brokers today have all their operations computerized and employ qualified industry specialists to advise on buying and selling of stocks.
Erstwhile brokers sat back waiting for business to come to their offices. Now brokers or stock market professionals are either playing host to foreign investment bankers, who are looking for opportunities on the Indian stock market, or visiting fund managers abroad seeking investment here in India.
The stock market houses are redefining themselves in every sphere and leading India towards the much sought global recognition in terms of development, infrastracture and technology. They try to provide all attendant functions of financial management at one place. The business of stock broking is highly visible today. Communication links between the dealing room and the trading ring are being improved. The National Stock Exchange or NSE (inaugurated on 23 July 1994) provides nationwide trading facilities with access to investors all over the country. The automated, screen-based trading system using state-of-the-art technology makes market operations transparent.
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. It is the regulatory body in charge of the country's capital markets. In every way possible, professionalism has come into the stock market business.
The best stock broking houses (such as Brisk Capital Market Services, New Delhi and SSKI, Bombay) have already redefined themselves and have introduced the compilation of a database to identify avenues for investments in industries.
Some of the Indian finance service companies have already made some progress in setting up equity research for identifying growth scripts for portfolio investment and have taken up stock broking earnestly. The best firms today provide a blend of three functions: pre- sales, sales and after-sales.
Candidates who are interested most possess the undermentioned personality traits including the academic requirements. An analytical, logical brain; imagination; pleasure in solving complicated problems; judgment; tact in dealing with clients/colleagues; business sense; probing curiosity; intuition and the ability to visualize the implications of present policies and actions on the future in practical terms; and a flair for figures.
Stock broking business requires the services of specialists (in varied fields) - economists, accountants, finance managers, financial analysts, capital market specialists, and investment & financial planners. Postgraduate courses in economics and commerce are available in most universities in the country. Among the programs available, the ones at the central universities in the metropolitan cities are the most useful and updated for entry into this line of business. The Institute of Chartered Accountants of India (ICAI), New Delhi, conducts the chartered accountancy course
for the plus two level school leavers through the foundation course and directly for graduates (except fine arts graduates). Finance managers may be MBAs with specialization in finance from the reputed institutes of management or from the departments of business administration of the major universities.
Interested candidates who are looking for useful and relevant courses for the stock broking business in India, the same are available at:
Institute of Company Secretaries of India, New Delhi. Course: Postgraduate membership course in capital market and financial services.
Institute of Capital Market Development, 1965 Arya Samaj Road, Karol Bagh, New Delhi-110005. Course: One-year postgraduate program in fundamentals of capital market development. The course is open to graduates.
All India Center for Capital Market Studies. J. D. C. Bytce Institute of Management Studies and Research, Nashik-422005 (Maharashtra). Course: Postgraduate programs in capital market studies in collaboration with the Bombay Stock Exchange Training Institute leading to a diploma from Poona University. The course is of one year duration open to graduates through an all-India selection process. Bombay Stock Exchange Training Institute, Stock Exchange Building, Fort, Bombay-400001. Certificate courses are run periodically throughout the year.
Institute of Financial and Investment Planning, B/303, Ventex Vikas, M. V. Road, Andheri (E), Bombay-400069. Course: One - year correspondence - cum - lecture series course leading to a diploma in financial and investment planning.
Institute of Chartered Financial Analysts of India (ICFAI), Road no. 3, Banjara Hills, Hyderabad-500034. Courses: Chartered financial analyst equity research. ICFAI is coming out with a number of programs, which are relevant to this field.
The prospects from the stock broking businesses is incredible and dynamic. India has 21 active stock exchanges accounting for nearly 7000 listed companies, 6500 brokers and 538 investment bankers registered with the SEBI. These statistics are very impressive by any standards. There are more than 40 million stock market investors in the country. The total corpus of the 16 mutual funds in the country, under 146 schemes, exceeds Rs. 7000,000000 and fund managers expect the corpus to grow up at an incredible rate.
Capital markets in India are going through a major reformation phase as initiatives taken by SEBI in the direction to discipline reform and bring greater transparency in the markets has had positive effect on the performance. Foreign institutional investors, mutual funds and even individuals have once again started posing confidence in the capital markets and thus this has enhanced prospects for brokers, investment and equity analysts. Economic growth and liberalization taking place in the country has opened number of opportunities in various organizations like mutual funds, investment consultancy, broker firms, insurance companies, merchant banks, pension funds and other financial institutions. The present scenario definitely speaks positive of the future of this industry.
The face of the stock market in India is changing fast to keep up with the demands expected to be made of it. Meeting capital adequacy norms, transparency in operations, overseas exposure and research back up are important needs now. Prospects for the stock broking business are bright and for those who are qualified to handle this business and have the necessary personality traits to cope with it, the openings are many.
Foreign firms are waiting in the wings to secure government clearance for participating in the course. Indian brokers will, therefore, have to come to terms with real competition and ensure international standards of services to the investor.
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