Strategic Re-entry into Capital Markets
HSBC is re-entering India's equity broking business after an absence of more than a decade. The move marks a significant reversal of the bank's 2013 decision to exit domestic retail brokerage and depository services. According to two people with direct knowledge of the matter, the London-headquartered bank is seeking to capitalize on a robust pipeline of share sales and rising demand from wealthy clients for equity market products.
The bank has begun the process of rebuilding its equities platform and is currently hiring senior executives for roles in cash equities and institutional broking. HSBC is expected to launch its retail broking services within the next few months.
Leveraging Existing Infrastructure
HSBC already holds a broking licence through its subsidiary, HSBC InvestDirect Securities (India) Private Limited. The bank plans to use this existing entity to revive its operations, avoiding the need for new regulatory approvals for the core license.
A source familiar with the discussions noted that the strategy is heavily focused on digital capabilities. "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. The source added that interest among Indian customers for trading in international markets has also grown, partly due to the establishment of India's tax-neutral hub, GIFT City.
Distinctive Market Positioning
HSBC, currently India's largest foreign bank by balance sheet, is one of the few global banks maintaining a sizable consumer business in the country. This re-entry underscores a strategic shift to push for a greater presence among affluent and wealthy customers. This approach contrasts with peers such as Citibank, Standard Chartered, and Deutsche Bank, which have largely chosen to focus on serving large institutions.
In a recent interview with CNBC-TV18, HSBC Group CEO Georges Elhedery stated that the bank is looking to increase investments in India with a growing focus on affluent customers. The bank has identified India as a key growth market as it sharpens its focus on Asia and wealth management.
Financial Performance and Expansion
The re-entry into broking comes as HSBC India continues to show financial strength. The bank reported a 4% year-on-year increase in net profit in the first half of 2026, driven by higher revenue from corporate and institutional banking businesses. Additionally, in January, the bank received approval to open 20 new branches across India, bringing its total branch count to 46.
The timing of this move coincides with record participation from retail investors in Indian equity markets and a strong pipeline of initial public offerings (IPOs). Several large IPOs are expected in the coming quarters, prompting global and local financial firms to expand their capital markets capabilities. The Economic Times reported in March that Barclays Plc is also in advanced preparations to restart its equity capital market business in India, although Reuters could not independently verify that specific report.