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Ratnabali Capital Markets


Ratnabali Capital Markets offers brokerage and depository services, and also trades on its own account.

The company is a member of the BSE, NSE and MCX, and depository participant (DP) with the NSDL.  It operates in the capital, futures and options (f&o), and currency markets.

The company appears to have morphed its business model from brokerage services to trading and therefore, current performance doesn’t appear to be comparable to the past – it reported marginal net profits of 2.5cr on revenues of over 700cr in the last twelve months.  It employed minimal debt relative to assets to finance its operations (at 30th September 2011).

The business is primarily exposed to low retail participation in the capital markets, which is largely sentiment driven and driven by a fear of falling prices and even stagnation.  Moreover, there is significant competition in this industry and rapid technological changes that have reduced barriers to entry and increased the need for technology investments.

The company appears to be engaged in the trading of futures and options for its own account, which is subject to substantial risk of losses.

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