Kotak Securities to increase footprint in smaller towns

Stock broker Kotak Securities is targetting greater retail investor participation in the capital market by expanding its footprint in smaller towns.

The company, which has about 200 branches in India, will open 20 new branches this fiscal in tier II and III towns. Together with branches and franchisees, Kotak Securities has presence in 1,472 spots across 370 cities.

"There is renewed interest amongst retail investors towards the capital market with the green shoots of economic growth becoming visible," Kotak Securities executive vice president and head broking B Gopkumar told Business Standard.

He said the retail investors had turned cautions after 2008 meltdown, but the fear was slowly vanishing. "Retail investor participation provides the much needed depth to the market."

In Uttar Pradesh and Uttarakhand, Kotak Securities has 13 branches and three more branches in Mathura, Rudrapur and Haridwar are coming up soon.

He said the financial inclusion scheme 'Jan-Dhan Yojana' of the Centre would increase financial literacy and as spin off also spur retail investor participation.

Meanwhile, Kotak has launched StartNow, a campaign to advise retail investors and 'fence sitters' to start informed investing. It highlights research backed insights and deployment of smart technology.

"A recent study by Kotak has validated that investors prefer knowledge support and access devices to market," he said. The online survey was conducted during July 2014 across 20 cities and covered 2,500 respondents.

He said retail investors are mostly attracted by big ticket Initial Public Offers (IPO).

"IPOs are big draw to retail investors due to size, massive publicity and brand equity. We are confident in the coming months, quality IPOs would attract the retail investors once again," Gopkumar noted.