Are Foreign Banks Safe ??? - HSBC shuts brokerage arm in India; around 300 lose jobs

Hong Kong and Shanghai Banking Corporation (HSBC) said on Thursday it will discontinue its retail broking and depository business in India as profit margins are shrinking with trades shifting to derivative options from cash market, and retail investors preferring gold, real estate and bank deposits to stocks.  The bank had purchased the business from infrastructure lender ILFS in 2008 for a little over Rs 1,000 crore. "The exit will impact around 300 employees," a person aware of the developments said. HSBC Direct Securities, which operated the business, will continue with its institutional brokerage and depository business, a bank spokesperson said. "Impacted employees will be offered a fair and equitable severance pay in line with HSBC policy, and career transition services will be extended through a professional agency," the HSBC spokesperson said in a release. 

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