barclays securities india pvt ltd Management discussions

BARCLAYS SECURITIES (INDIA) PRIVATE LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Operations and future outlook: During the year under review the Company obtained following approvals from the concerned statutory authorities: 1. Registration with SEBI as a Trading and Clearing Member of National Stock Exchange for Capital Market and Futures & Options Segment. 2. Registration with SEBI as a Trading Member of Bombay Stock Exchange for Cash Segment. 3. Approval of application for registration as a Depository Participant with National Securities Depository Limited (NSDL) by NSDL. Pending registration with Securities Exchange Board of India. 4. Registration with SEBI as a Portfolio Manager. The company had also applied to Bombay Stock Exchange for trading and clearing membership of Derivative segment, which was approved on April 17, 2008. The company has also empanelled itself with several fund houses in the Indian Market for distribution of their products. Your company envisages to house operations of two of its global clusters - Barclays Capital and Barclays Wealth. Wealth Management: The wealth management sector is poised to witness tremendous growth. Indias economic growth is making larger sections of the population prospective customers of wealth management providers. The growth would be seen across all income levels, with high networth individual (HNI) segment continuing to contribute the maximum to the wealth size. GDP growth and Market Capitalisation growth rate will be two key drivers to the wealth generation. Your company will be introducing the global wealth management principles and Barclays Wealth Investment Philosophy to the Indian Market, through its offering of off-the-shelf products as well as specifically tailor made products, i.e., both structured product offering and Portfolio Management solutions, to suite clients risk appetite and credit profile. Barclays Wealth is working, on building platform for client broking and depository services for HNIs, who actively invest and trade in equity markets and seek customized research and advisory services. Your companys approach is to provide advisory based brokerage services with a strong emphasis on research and to offer clients value added services. India has a huge potential market for developing service offerings, which includes investment advisory, planning and asset deployment advice and asset allocation, along with distribution of wide range of products. Institutional Broking: Barclays Capital, the investment banking division of Barclays group is exploring opportunities to engage into institutional broking, mainly to cater to Barclays group companies, willing to invest into India through the FII route. Outlook: Your company continues to remain optimistic about: long-term India story and the opportunities, it will offer across all segments. Currently your company is in a start -up stage and will commence its business / financial services from the next financial year.. The financial services sector is expected to grow rapidly in an expanding economic environment. However in the short term, from time to time there will be challenges that will temper the market sentiments. Company has a positive view on further expansion of wealth sector through deeply researched and customized solutions for their clients. Authorised Capital: At the Extraordinary General Meeting (EGM) of the members of the Company held on September 04, 2007 the Authorized Share Capital of the Company was increased from Rs. 230,000,000 to Rs. 270,000,000 divided into 27,000,000 Equity Shares of Rs. 10/- each by: 1. Reclassifying the existing un-issued 10,000,000 non-cumulative, redeemable, non-convertible preference shares of Re. 1/- each to 1,000,000 Equity Shares of Rs 10/- each. 2. Creation of additional 4,000,000 Equity Shares of Rs.10/- each. The Authorised Share Capital was further increased to Rs. 500,000,000 at the EGM of the members held on June 26, 2008. Main Objects: The main objects of the Company were amended during the year to enable the Company to undertake new activities, such as broking, depository participant, wealth management, distribution of mutual fund products, etc.