Many investment experts feel though stock markets did take a beating, India was not disturbed deeply by the fall. According to Robin Roy, associate director, PWC, the fact that investment banking and asset-based security market are in a growing stage in India, has strengthen the impact that was felt overseas. "We are in safe hands because we simply lack boulevard to trade," says Abizer Diwanji, head, financial services, KPMG.
While there is a general atmosphere of ruin and doom after the fall, most experts denies that the future of investment banking in India will be bleak. "For the moment, however, the fall in the prices of oil and commodities and the pulling out of hedge funds may put bearish pressure on the economy.
However, experts feel that demand pull will ensure that investment banking will continue to flourish in India. "Just because there have been some failures does not mean it is the end, in fact the need for advisory services increases all the more with these fallout," says Alpesh Shah, partner and director, Boston Consulting Group.
But if investment banking has to succeed in India, there are certain safeguards that need to be put in place. "India needs a robust credit rating mechanism and infrastructures that will help us trace credit history. A strong retail mechanism for the recovery of debts is also required.
Source: economictimes.com
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