Financial Services

Financial Services

With compliance efforts fragmented across many disparate systems, financial institutions, like many other organizations, are looking for better and more cost-efficient ways to manage compliance. With finite resources to allocate to compliance efforts, financial institutions must prioritize their efforts based on magnitude of exposure in order to optimize returns on compliance investments.

Broking Houses

Brokerage firms are the business entities that deal with stock trading. India, with an increasing capital market and a growing number of investors, has a number of brokerage firms. In Indian retail brokerage industry, the brokerage firms primarily work as agents for buying and selling of securities like shares, stocks and other financial instruments and earn commission for each of the transactions. There are plenty of brokerage firms in India.

Bond Market

The Bond Market in India with the liberalization has been transformed completely. The opening up of the financial market at present has influenced several foreign investors holding upto 30% of the financial in form of fixed income to invest in the bond market in India. The bond market in India has diversified to a large extent and that is a huge contributor to the stable growth of the economy. The bond market has immense potential in raising funds to support the infrastructural development undertaken by the government and expansion plans of the companies.

Depository Operations

A system of computerized book-entry of securities. This arrangement enables a transfer of shares through a mere book-entry rather than the physical movement of certificates. This is because the scrips are 'dematerialized' or alternatively, 'immobilized' under the system.

A depository performs the functions of holding, transferring and allowing withdrawal of securities through its agents viz., depository participants. For settlement of trades done at an exchange, the depository interacts with a clearing corporation which oversees the payment of funds and delivery of securities.

Credit Rating Agencies

Housing finance gives a measure of the socio-economic status of people. It is regarded as a critical sector in terms of policy initiatives and interventions. Financial allocations in the 5 Year Plans and fiscal measures related to housing has been taken and implemented successfully.

To help it grow and fulfill its huge requirements India Mortgage industry needs indirect government participation, as a guardian and facilitator. Private funds and even FDI should be encouraged to see 'India Mortgage' industry grow further. Overall revamping of land laws, rental laws, fast mutation and registration process along with setting up of credit rating organization and mortgage insurance will only help India in realizing its housing dreams. This will accelerate organized growth of 'India Mortgage' market and at the same time will help reach all sections of Indian society.

Private Equity Funds

The stock market in India does business with two types of fund namely private equity fund and venture capital fund. It also deals in transactions which are based on the two major indices - Bombay Stock Exchange (BSE) and National Stock Exchange of India Ltd. (NSE).

The market also includes the debt market which is controlled by wholesale dealers, primary dealers and banks. The equity indexes are allied to countries beyond the border as common calamities affect markets. E.g. Indian and Bangladesh stock markets are affected by monsoons.

The equity market is also affected through trade integration policy. The country has advanced both in foreign institutional investment (FII) and trade integration since 1995. This is a very attractive field for making profit for medium and long term investors, short-term swing and position traders and very intra day traders.

Commodity Market

Commodity trading is an interesting option for those who wish to diversify from the traditional options like shares, bonds and portfolios. The Government has made almost all commodities entitled for futures trading. Three multi commodity exchanges have been set up in the country to facilitate this for the retail investors. The three national exchanges in India are:

  • Multi Commodity Exchange (MCX)
  • National Commodity and Derivatives Exchange (NCDEX)
  • National Multi-Commodity Exchange (NMCE)

Commodity trading in India is still at its early days and thus requires an aggressive growth plan with innovative ideas. Liberal policies in commodity trading will definitely boost the commodity trading. The commodities and future market in the country is regulated by Forward Markets commission (FMC).

Stock Exchanges

Stock Exchanges are structured marketplace where affiliates of the union gather to sell firm's shares and other securities. India Stock Exchanges can either be a conglomerate/ firm or mutual group. The affiliates act as intermediaries to their patrons or as key players for their own accounts.

Stock Exchanges in India also assist the issue and release of securities and other monetary tools incorporating the fortification of revenues and dividends. The book keeping of the trade is centralized but the buying and selling is associated to a particular place as advanced marketplaces are mechanized. The buying and selling on an exchange is only open to its affiliates and brokers.

Key Challenges

Many financial services organizations are attempting to extend their SOX GRC solution to become a global risk-driven compliance solution. Although these SOX-based ERM tools have usefulness within an enterprise GRC ecosystem, they will not provide the compliance management portion of the task. Every company needs to build a risk-driven compliance management system that combines risk management and compliance management protocols in one place, a system that is consistently applied across the extended enterprise and connects to the ERM and other GRC impacting systems seamlessly.

The Solution

ANB addresses various issues by providing the comprehensive capabilities required for effective compliance management. These capabilities are essential whether you need to address a single complex mandate or you’re developing a full-scale enterprise regulatory risk framework. ANB solutions enable you to consistently track mandates, unify policy management across the business, perform well-coordinated impact assessments; automate targeted awareness training programs, create well-defined action plans, and efficiently execute other core tasks associated with effective legal and regulatory compliance.