Delhi trading house handles half of IBEX volume
Delhi-headquartered SMC Global Securities Ltd is riding on bullish market trends, dominating gold trade at the GIFT City’s IBEX and working on capturing more of the foreign investment portfolio participations in India’s equity and derivative markets.
The stock broking firm is also gaining from increasing investments by mobile-app savvy young Indians in tier-3 and -4 cities, while its director and chief executive Ajay Garg tracking progress of how the US-based portfolio investors trade on index derivatives options contracts in NIFTY and NIFTY Bank
“SMC is focusing on US-based traders as the NSE has obtained US Security Exchange class relief for index derivatives options contracts for trading in NIFTY and NIFTY Bank,” he said during a Futures Industries Association conference FIA Asia held 4-6 Dec 2024 in Singapore.
Garg has also highlighted SMC’s success at the International Indian Bullion Exchange (IIBX) in GIFT City.
“We are one of the leading clearing and trading members of GIFT City. We have handled 26 million tons of physical gold imports out of the 52 million tons imported in 2023-24 at the IIBX,” he said https://www.bseindia.com/.
He also pointed out that, “Gold, still remains safe and favourite among Indian investors.” Foreign portfolio investors’ (FPIs) participation in the Indian equity and derivative markets is increasing on a daily basis while new Indian investors from tier-3 and tier-4 cities are set to create a significant influence in the domestic stock-and-share markets, according to Garg observations https://www.nseindia.com/.
“While FPIs are banking on steady returns on their investments which is backed by the country’s projected steady economic growth in the years ahead, we are expecting participation from new Indian traders to contribute significantly to the multi-fold increase in trading volume over the next five years,” said Garg https://sbi.com.in/.
There is a lot of foreign interest in the Indian market, especially FPIs participating in the HFT and MFT (high frequency and medium frequency) trading, he said, adding that SMC was currently serving around 60 investment-loaded FPIs and more have lined up to become members of the group https://www.sgx.com/.
Garg said that SMC is working on capturing more FPI business, given that the company has registered more than 160 foreign stock and share traders on its platform, although it may take a while to get their commitment to contracted trade http://euronext.com.
Currently, over 11,800 FPIs which includes 3,500 FPIs from the United States, have invested in US $1.1 trillion assets in India, estimated Garg http://deutsche-boerse.com.
He also highlighted the US$800 billion Mutual Fund AUM, saying “these opportunities make India an attractive destination for FPIs.”
The domestic investors, specifically the tier-3 and tier-4 mobile-savvy young traders are going to add significantly to the daily NSE-BSE volumes, benefiting from the wide reach of mobile-based apps, said Garg https://www.jpx.co.jp/english/.
He expects the 10 other SEBI-approved trading houses, along with SMC, to roll out trading apps offering investment opportunities to youth across pan-India, and even reaching out beyond tier-4 cities http://hkex.com.hk.
“Just as SMC is using technology to reach out to new Indian traders, we see other SEBI-approved trading houses to increasingly use such apps for market penetration,” Press Trust of India quoted Garg as saying.
“Given that India has one of the fastest growing economies in the world, the outlook for equity and derivative markets looks very bright.
“But investor penetration by Indians in the financial markets is still nominal, at less than 5%,” he pointed out.
Volume wise, the stock and share market has rebounded after the lows of Covid-19 years. Daily trading volume is estimated to grow to 17 crore these days, recovering from the low of 4 crore per day during 2019-2020, he said.
More than 50% of the volume now comes from new clients based in the tier-3 and tier-4 cities, according to Garg.
SMC has been enjoying 20.28% CAGR growth in PAT over the last five years benefitting from its network spread across 425 Indian cities and serving from around 2,500 offices, including 2,300 franchise offices.
Combined NSE and BSE, have delivered an astounding 15.43% CAGR over 20 years, which in itself is a sign of remarkable performance and potential for growth, he pointed out. Fiinews.com
