HSBC plans India equity broking return after 13 years amid IPO boom, sources say

[MUMBAI] HSBC is re-entering India’s equity broking business after an absence of more than a decade, seeking to capitalise on a robust pipeline of share sales and rising demand from wealthy clients for equity market products, two sources said.

The move marks a reversal of HSBC’s decision to exit the domestic retail brokerage and depository business in 2013, and underscores the growing importance of India’s capital markets and wealth-management industry to global banks.

The London-headquartered bank has begun the process of rebuilding its equities platform in India, and is hiring senior executives for cash equities and institutional broking roles, the sources said.

“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,” one of the sources said.

The source added that interest among Indian customers for trading in international markets has also grown since the establishment of India’s tax-neutral hub of Gujarat International Finance Tec-City.

HSBC is likely to launch retail broking services over the next few months, the second source said.

The bank already holds a broking licence through HSBC InvestDirect Securities (India), which it plans to use to revive the business.

The sources declined to be identified because the discussions are private.

HSBC did not immediately respond to queries.

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HSBC – now India’s largest foreign bank by balance sheet – is one of the few foreign banks that still has a sizeable consumer business in the country, and is pushing for a greater presence among affluent and wealthy customers.

Peers such as Citibank, Standard Chartered and Deutsche Bank have chosen to focus mainly on serving large institutions.

HSBC’s re-entry into the broking business comes as India’s equity markets continue to attract record participation from retail investors and a strong pipeline of initial public offerings.

Several large IPOs are expected to come to market over the coming quarters, prompting global and local financial companies to expand their capital markets and broking capabilities.

The Economic Times reported in March 2026 that Barclays is in advanced preparations to restart the equity capital market business in India, 10 years after the London-based bank shut it down as part of a global restructuring.

Reuters could not independently verify the report.

HSBC has in recent years sharpened its focus on Asia and wealth management, identifying India as a key growth market.

In a recent interview with Indian business news channel CNBC-TV18, HSBC group CEO Georges Elhedery said that the bank is looking to increase investments in India, with a growing focus on affluent customers.

HSBC India reported a net profit increase of 4 per cent year on year in the first half of 2026, driven by higher revenue from corporate and institutional banking businesses.

In January, the bank received approval to open 20 branches in India, taking its total branch count to 46. REUTERS