When the going gets tough…

In our parent’s generation, getting a sarkari (government ) job was the ticket to a comfortable life

This changed post 1991 when the winds of economic liberalization shook India

But now, it looks like those times are back.

All participants in India’s equity markets are facing unusual stress.But our regulator SEBI seems do be doing great.

An article in ET states :In its budget for 2012-13, Sebi has put aside around 281 crore for the acquisition of office and residential premises. This amount includes acquisition of new office premises or plot of land in BKC for additional office space in Mumbai, setting up of five local offices at new locations, purchase of flats for senior executives at Mumbai and also the purchase of office space for a northern regional office at New Delhi.

Bottom line: When the going gets tough, the regulator gets moving !!

Another one bites the dust

There was an article in the Indian Express which mentioned that 6000 sub-brokers shut down shop  this year.

Now there is an article in ET about how well known broker Shankar Sharma is bidding goodbye to Dalal Street.

Brokers in India are fast becoming an endangered species…thanks to lackluster volumes,abolition of entry loads,increasing compliance ,rising employee costs and possibly the biggest reason of all-customer distrust.

Its fairly clear we are treading the US path here…small mom and pop shops will close down and the only survivors will be the discount brokerages and the big players.