For private circulation only

July 25, 2019

The stock market is not supporting us and our report card for June 2019 reflects this. Let us take a look at what went right and what did not in the last month.

The good

• We maintained our market share in the cash and derivatives markets in the broking business.
• In the mutual fund distribution business, the assets under management (AUM) were consistent even though the industry AUM dropped during the month.
• After declining in May, the Loan Against Securities business recovered and showed signs of growth.

The not so good

• The industry outperformed us in new client additions, which fell drastically last month partly due to our focus on quality accounts.
• The SIP book grew marginally.

The way forward

We have launched an attractive brokerage scheme which should hopefully improve our customer addition numbers going ahead. The Systematic Investment Plan (SIP) book is also expected to show a good growth in July on the back of the recently concluded SIP Kar, Record Kar campaign. Keep up the hard work and hang in there. Whenever the tide turns and the market recovers, we will reap the rewards.

The market regulator’s move to allow online application for initial public offerings (IPOs) through Unified Payment Interface (UPI) with effect from July 1, 2019 will help revive our IPO distribution business.

• Sharekhan is all set to launch the IPO Online facility on Sharekhan App, TradeTiger and sharekhan.com to allow customers to apply for IPOs online using UPI.
• Thanks to the new facility, customers will once again be able to participate in both the primary and the secondary market through Sharekhan.
• As one of the firsts providers of the facility Sharekhan will have the early-mover advantage which can be leveraged to bring back all those customers who shifted to banks for IPOs in the last three years.
• We must, therefore, create awareness about IPO Online among customers and educate them in all aspects of UPI.

Customers will have two more options for applying for IPOs, they could use the Admin Module to place orders by calling their relationship managers/the Dial-N-Trade team or fill a physical form and submit it at our nearest branch.

Sharekhan is committed to continually improving the online experience for customers. I am happy to share our recent achievements in this direction.

• We have rolled out two new types of orders on all our online trading platforms:
  • Exchange Margin Funding will allow a customer to leverage the securities he owns for an infinite period by maintaining a minimum margin, in the form of cash or collaterals, in his account.
  • BigtradePlus will enable him to take more exposure with a minimal risk by automatically squaring off his position if the risk defined by him at the time of placing an order is breached.
• One-Click SIP, introduced in Sharekhan App, offers an easy and fast way to start multiple SIPs in mutual fund schemes recommended by Sharekhan.

I congratulate all the teams involved in rolling out the new features and hope they will continue to come out with new ideas to improve the customer experience in Sharekhan.