With foreign portfolio investors pumping in billions of dollars into the Indian market, can foreign brokerages be far behind? A number of these brokerages are setting up shop in India, either through subsidiaries or in joint ventures local brokerage.

Some of these firms are new while others are coming back after having shipped out.

Macquarie Securities, Lehman Brothers, Bear Stearns and Credit Suisse First Boston are among the well-known names that are about to commence broking operations in the country.

Lehman and Credit Suisse were earlier operating in the country and had quit for various reasons.

Bear Stearns, the seventh-largest securities firm in the US in terms of total capital, is exploring the possibility of starting broking operations here. According to its website, the company processes around 7 per cent of the daily traded volume on the New York Stock Exchange.

Macquarie Securities, part of the Macquarie group of Australia, managing assets of close to $63 billion, has already set up an office in India and has bought the card of ING Baring by virtue of its global takeover of ING's Asian equities businesses early this year.

Macquarie has appointed a former banker to head its Indian operations.

Credit Suisse, which is currently serving a three-year ban by the market regulator, the Securities and Exchange Board of India, wants to make a fresh start.

A company executive told Business Standard: "We have already missed the rally in the Indian markets in the past year, and are at present awaiting the lifting of the ban. We plan to re-start our operations in six-eight months once the regulatory formalities are through."

Head hunting sources also indicated Credit Suisse was looking for staff for its Indian arm.

Also in the fray is US-based Lehman Brothers. According to sources, the company is in talks with a couple of domestic broking firms, including a leading Mumbai-based broking company for a joint venture.

Investment banking sources confirmed Lehman Brothers was planning to buy out a majority stake in a domestic broking firm.

Goldman Sachs, too, is planning to strengthen its ties with Kotak Securities, and increase its presence here.

A major driver for foreign brokerages setting up shop in India is the increase in registration by foreign institutional investors. The brokerages would like to serve their existing clients whom they serve in other countries.

Besides, foreign clients were comfortable with their existing brokers and are willing to work in tandem with them to structure the required portfolio, said an executive at a foreign broking firm.

The going may not be all smooth, though. The managing director of a leading Mumbai-based domestic broking firm said, "While there are foreign firms that are keen to set up offices and grow either organically or inorganically, there are very few opportunities available.