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"The Story of IDBI CAPS: A Refreshing Success" "Resilience, perseverance and foresight are the ingredients for the success of any company". Mr. G. V. Nageswara Rao, MD, IDBI Capital Market Services Ltd, reiterated this at a talk at S.P.Jain Institute of Management & Research. Tracing the phenomenal growth of IDBI Caps, Mr. Rao highlighted that even within a PSU system a lot that can be achieved. IDBI Caps, which commenced operations in March 1995 started out as an equity brokerage firm. Mr. Rao joined the company in 1997 and realised that the six primary dealers, who obtained licenses in 1995, were making good money. IDBI Caps had not ventured into the area as a lot of risk was involved. However Mr. Rao recognized the opportunity and made a representation to the board to enter the market. A proposal was made in 1997 and the license was obtained only in 1999. It was not an easy task convincing the senior management. Mr. Rao said that for such a foray the first hurdle to be crossed, it was that internal marketing was needed to convince them. Later, efforts had to be directed towards overcoming the formalities involved in obtaining a license under the dual regulatory framework of RBI and SEBI. The Company became the first Primary Dealer in the country to achieve a secondary market turnover in government securities over Rs. 100,000 crores. The Company achieved the distinction of the highest secondary market outright turnover in this segment for the second year in succession. Through this Mr. Rao stressed on the importance of perseverance and belief in ones pursuits. As far as the other businesses are concerned, he spoke about the need for derivative products and short selling in the case of bond markets to take advantage of both the scenarios of rising and falling interest rates. The field of Primary Market Debt Placements, he said, is becoming increasingly competitive. It is important to note in this context that it is as easy to regain a lost market position if one adapts to and takes advantage of the changing market scenario. The most difficult area to operate in, according to him, is institutional brokerage. Here he feels that it is imperative to remain in the top five of the industry. Also with foreign players in this segment, it is becoming increasingly difficult to remain in the top league. Firms need global research and experience. In this respect he spoke of the need and the potential for IDBI Caps to take this kind of a giant leap forward. Also they need to find their way into the retail network for their Depository segment. Mr. Rao centered his discussion around the importance of team building and choosing the right person for the task. He also said that it is extremely important to take strategic decisions that have a significant impact on the company's growth. Whether a decision is right or not depends on as much on luck as on analytical skills. In retrospect, he said that he feels that his efforts have been rewarded as IDBI Caps has turned out as one of the most successful business in the capital market area. The kind of revenues they have been able to generate, no other firm has been able to achieve. He concluded by talking about the future plans of IDBI Caps, that is, online stock trading and investments, retailing of government securities and other products by tying up with Indian post & distribution through a network of agents and retail distribution of insurance products. |
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