Big daddy comming :)

DSM

Well-Known Member
#1
Here's some news that will gladden the heart of many traders. Excerpt from 'The Hindu' - 21st Apr.

RIL chief financial officer Alok Agarwal said at a media interaction after the earnings release that RIL is seriously working on a massive expansion of proprietary trading business by launching a full-fledged brokerage arm under its financial services vertical launched last year with DE Shaw of the US in an equal JV.

On the brokerage entry, Mr. Agarwal said: We want to make our brokerage arm to be based on algorithmic trading but will be a completely new model of brokerage.

When asked on the proposed entry in a business segment that is bleeding, Mr. Agarwal said: We are sure with latest technology we can conquer that.

...currently it is still at the drawing board level and we are still putting in a team, he added.

RIL and DE Shaw put in USD 5 million each into the financial services arm so far, he added.

In March 2011, Reliance Industries Limited and the D E Shaw group announced that they have agreed to establish a joint venture to build a leading financial services business in India.

The partners had said the joint venture would incorporate the DE Shaw groups investment and technology expertise with Reliances operational knowledge and extensive presence across India to offer a comprehensive array of financial services to the Indian marketplace.
 

DSM

Well-Known Member
#2
The big brokerage houses have got complacent. The technology and platform they provide is primitive by world standards, and the customer service is pathetic. Thanks to the entry of discount brokers in India, the days of ripping off the investor/trading communitity will slowly come to an end.

A intraday future trade I made last year on a platform provided by one of the large brokerage costed me more than Rs. 1,600! Thereafter I promptly closed the account, as the charge was not as per the agreement - they said it was based on the lot size (not value) and would not bother to negotiate. So how many other traders they are still charging this exobirtant brokerage.?

Till such time there is serious competition in this field, and also awareness in the investor/trader community, nothing will change. Hopefully entry of RIL in this field will change the status quo.

Both (this and the Broadband venture) are eagerly awaited.
 

MANISH_DAMANI

Well-Known Member
#3
Hope better will be service, not like reliance money.
 
#4
There is no doubt that the trading platform that brokers in India provide to their customers are 15 years behind the world and to add insult to the injury, brokers like ICICIdirect and HDFCsec charge an arm and a leg for trading on their crappy websites.

One has to see the trading platform of eTrade.com to believe it.

BUT I wouldn't count on RIL doing anything innovative anytime soon. They have been launching broadband wireless service since last 3 years or so and have nothing to show so far. RIL under Dhirubhai Ambani was an over-achiever but now all their announcements seem like PR exercise without any substance.
 

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