N Sundaresha Subramanian/DNA India

Mumbai, Jul 21: About sixty years ago they brought World War II to our eastern borders. Three decades ago, they brought the people’s car to our pot-holed roads. Now, the Japanese are bringing their expertise to our stock markets.

With growth opportunities diminishing in their ageing home market, securities firms from the Land of the Rising Sun are hunting for opportunities outside.

With the economy of their eastern neighbour, the US, in tatters and growth prospects diminished by the subprime-induced turmoil in the financial markets there, the Japanese companies are forced to look West.

India, which offers growth opportunities unrivalled by most in the region, is right on the top of the hit list.  At least four brokerages are already in the fray.

Come Monday, Daiwa Securities, a subsidiary of Daiwa Securities Financial Group, will commence broking activities. It will take trading orders from five of its offices around the world in London and Tokyo, agency reports said quoting a Nikkei daily. Daiwa’s Indian unit, a joint venture with Sumitomo Mitsui Financial Group, began operations as the first Japanese broker with a full line-up of services in India in April.

Meanwhile, others are not far behind. Nomura Holdings, Japan’s largest securities firm, whose attempt to take over Vallabh Bhansali’s Enam Securities failed last year, said it has lined up aggressive expansion plans.

Nomura, which received regulatory approval to offer stock broking in India, will increase personnel here to 100 from 17 and set up a 20-member research team, Michiyori Fujiwara, a spokesman at the Tokyo-based company, said.

Nomura failed to increase profit in five of the past six quarters as former chief executive Nobuyki Koga’s attempt to expand in the US collapsed amid the worst housing market in decades. Nomura earlier this year said it aims to quadruple annual revenues from Asian markets outside Japan to 100 billion yen ($924 million) within five years. 

Mitsubishi UFJ Securities set up a subsidiary in Mumbai in April.

Mizuho Securities has also signed a memorandum of understanding with Tata Capital to jointly launch a private equity fund and offer wealth management services.