HSBC is preparing to return to India’s equity broking market after more than 10 years away, reported Reuters citing sources.
The bank is responding to increased activity in India’s share markets and greater interest among wealthy customers in equity-related products, the sources said.
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HSBC withdrew from India’s retail brokerage and depository operations in 2013.
It is now rebuilding its equities business in the country and recruiting senior staff for cash equities and institutional broking, they said.
A source was quoted by the news agency as saying: “Looking at the phone penetration and everybody having direct capital market access, the idea is to have digital capabilities, and getting to retail brokerage business is an important element there.”
The person said Indian customers had shown greater interest in trading overseas markets since the creation of the tax-neutral GIFT City.
HSBC could introduce retail broking services within the next few months, the second person said.
The bank already has a broking licence through HSBC InvestDirect Securities (India), which it intends to use for the relaunch.
HSBC did not immediately respond to a request for comment.
The Economic Times reported in March that Barclays was making advanced preparations to restart its equity capital markets business in India, 10 years after closing the operation as part of a global restructuring.
HSBC has focused more closely on Asia and wealth management in recent years, with India identified as a key market.
In a recent interview with Indian business news channel CNBC-TV18, HSBC Group CEO Georges Elhedery said the bank planned to increase its investment in India while placing greater emphasis on affluent customers.
In January, the bank received approval to open 20 branches in India, which would bring its total number of branches to 46.
