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HindustanTimes Sat,19 Apr 2014
Talking trade
Hindustan Times
New Delhi, September 18, 2012
First Published: 17:47 IST(18/9/2012)
Last Updated: 17:53 IST(18/9/2012)
Watching the markets: Stock brokers have to be in constant touch with clients, inform them of market movements and advise them on the amount of risk they should take

The lowdown
Stock brokering involves the buying and selling of shares for clients on commission basis. Most big broking firms, however, don’t restrict themselves just to shares. They offer mutual funds, insurances, commodities, currencies and other financial products as well. Most firms recruit freshers as assistant relationship managers (ARMs) and relationship managers (RMs). These professionals’ job is to be in constant touch with the clients, inform them of market movements and advise them on the amount of risk they should take.

They are the one-point contact of the clients. They take orders from clients to buy and sell at specific rates. Besides working with existing clients, they also solicit more business for the company. An ideal RM would be someone who raises the clients’ net worth. Since most of their decisions are based on speculation, it is a high pressure job. A stock broker has to be extremely cautious because the current world economy is volatile

Clockwork
The average day of an RM: 
9 am-10 am: Check pink papers and business channels. Update oneself on client positions. Have pre-market opening briefings with seniors
10 am-3.30 pm: Buy/sell shares and other securities when markets open. Call up clients or receive calls about
orders
3.30-5 pm: The market closes. Again call up clients to confirm orders on recorded lines. Visit clients to build
relationships
5pm- 6pm: Attend training sessions, which are organised to keep new recruits up to speed with new business and ventures. There is no off time for an RM as s/he has to always be ready to interact with his/her clients

The payoff
A relationship manger with an MBA in finance can draw Rs. 2.4 lakh to Rs. 4 lakh a year (depending on the firm). Non-finance RMs earn less. A good RM can rise to become a team leader, a zonal manger of a branch or an AVP

Skills/TRAITS
* Love for the markets. You should understand the pulse of the Sensex and the Nifty
* You should be a people’s person
* Trust and integrity are an absolute must, otherwise your client and the company can suffer irreparable losses
* You deal with people’s life savings, so giving the right advice is critical

Getting there
Most brokerage firms hire ARMs and RMs from noted MBA institutes. In addition to your business degree, you could arm yourself with a certificate such as the NSE’s Certification in Financial Markets and BSE Certification on Derivatives Exchange. More details at http://www.nseindia.com/education/content/nse_certification.htmandhttp://www.bseindia.com/training/bcde_test.asp

Institutes and URLs  
* BSE Training Institute, Mumbai
* National Stock Exchange, Mumbai  http://www.nseindia.com/education/content/nse_certification.htm
* Institute of Company Secretaries of India, New Delhi (PG course in capital market  and financial services) www.icsi.edu 
* The Indian Institute of Finance, New Delhi (Master of Business Finance) www.iif.edu
* Jamnalal Bajaj Institute of Management, Mumbai www.jbims.edu
* NMIMS University www.nmims.edu 
* SP Jain Institute of Management & Research, Mumbai, www.spjimr.org

Pros and cons
* The stock market is directly connected with economic growth, so higher GDP means higher salaries
* The market will eventually grow as India is on a growth trajectory 
* One mistake can cost clients heavy, so pressure is high
* Dealing with clients in the bear run tests the mettle of an ARM/RM
* The work can affect family life

You need to know about risk management techniques, asset allocation strategies and have the ability to understand economies - Vijay Bhushan, chairman (northern chapter), Association of National Exchanges Members of India, New Delhi


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