India’s financial services industry is rapidly transforming, driven by rising incomes, improved financial literacy, and widespread digital adoption. The sector spans mutual funds, insurance, stock markets, and wealth management, extending its reach into semi-urban and rural areas.
Securities services are the essential functions that ensure investments are safely managed and efficiently processed. These include custody services for securely holding stocks and bonds, clearing and settlement of transactions, registrar and transfer agency services for maintaining accurate ownership records, and trustee services for overseeing financial agreements. Orbis is a key player in this space, offering these critical services and currently trading at [View Current Price of Orbis Financial Corporation Unlisted Share]. It has been under the radar considering its recent growth path and roadmap.
India's strong savings culture, where gross savings accounted for 30.2% of GDP in 2023, provides a solid foundation for growth as this high saving rate provides capital that can be invested in various sectors, such as businesses, fueling economic expansion and supporting further financial market growth. Additionally, the increasing number of high networth and ultra-high networth individuals is driving demand for specialized financial solutions, contributing to a dynamic and expanding investment market.
Rising Wealth and Financial Awareness:
The number of High Networth Individuals (HNIs) in India reached 7.9 lakh in 2022 and is expected to double by 2027. This growth is driving demand for wealth management, tax planning, and other financial services. Retail investors are also entering equity markets and mutual funds at an unprecedented rate, indicating an overall shift toward financial assets. The low mutual fund penetration rate of 5-6% signifies a vast latent market with considerable room for growth.
Government Policy Support: Initiatives like allowing 100% Foreign Direct Investment in insurance intermediaries and increasing the cap from 74% to 100% in insurance sector under Budget 2025, have pushed for more foreign investment. Efforts to enhance financial inclusion, such as promoting International Financial Services Centres which are specialized zones that provide a competitive platform for global financial activities, including cross-border transactions, offshore asset management, and international trading.
Digital Access: India’s rapidly expanding internet and mobile penetration is transforming how financial services are delivered. Digital platforms like UPI, mobile wallets, and investment apps are broadening access to financial products while reducing costs. Additionally, innovations like digital gold, robo-advisors, and algorithmic trading are reshaping the landscape, particularly for younger and tech-savvy investors.
Orbis Financial Corporation Limited is a financial services company that provides a range of services to institutional and retail investors. The company aims to be an end-to-end solution provider for various clients, including Foreign Portfolio Investors, Foreign Direct Investors, Mutual Funds, Endowments & Trusts, High Networth Individuals, Alternative Investment Funds, Stock Brokers, Private Bankers, and Portfolio Managers.
As a registered custodian with SEBI, Orbis acts as a safekeeper of clients' securities, ensuring that these assets are held securely. In addition to safekeeping, it provides fund accounting services, which involve maintaining detailed records of financial transactions and valuations. These services are essential for a variety of institutional and retail investors. Here’s a breakdown of what these services entail:
Safekeeping of Securities: It holds and protects clients' investments, whether in physical form (like paper certificates) or electronic form (like digital records). They ensure these assets are secure, preventing any risk of theft, loss, or unauthorized access. By maintaining proper records and security measures, Orbis guarantees that clients' investments remain safe and accessible whenever needed. This service is crucial for investors who want to ensure their holdings are well-managed without the risk of mishandling or fraud.
Asset Management: They carefully monitor and manage all assets under their custody, ensuring that each investment is properly tracked and accounted for. This includes keeping detailed records of ownership, monitoring market changes, and ensuring that any dividends, interest payments, or corporate actions (such as stock splits or mergers) are accurately processed. By maintaining a high level of oversight, the company helps investors maximize their returns while ensuring the smooth administration of their holdings.
Fund Accounting: This maintains detailed financial records of all transactions related to the funds they manage. This includes tracking purchases, sales, income earned, and any changes in the value of investments. They also perform daily reconciliations to verify the accuracy of financial statements and ensure that all recorded transactions match the actual assets held. This service is essential for investors who need precise financial data for reporting, tax calculations, and performance analysis.
Reporting: They provide accurate and timely reports to help clients stay informed about their investments. These reports include updates on asset values, transaction history, market performance, and any significant changes that may affect the client’s portfolio. Clear and transparent reporting allows investors to make informed decisions, assess risks, and strategize their future investments effectively.
Orbis also strives to use technology to enhance its custody and fund accounting services. They focus on adopting cutting-edge technologies to provide their clients with tailored solutions. This focus on technology helps them to offer more effective and efficient asset management services.
Orbis Financial Corporation Limited is a clearing member in all market segments. This means they play a crucial role in facilitating the clearing and settlement of trades in various financial markets. Clearing services are essential for ensuring that transactions are completed efficiently and securely.
Clearing Across all Market Segments: It helps in clearing trades across different types of markets, including stocks (equity), foreign currencies, and commodities like gold and oil. This means they work with traders and investors in various fields, making sure all their transactions are handled smoothly and safely. By covering multiple markets, it allows clients to trade in different investment areas without worrying about the clearing process.
Settlement:When a trader buys or sells something, the process doesn’t end instantly—it needs to be settled. Settlement means making sure that the buyer gets what they paid for (stocks, currency, or commodities) and that the seller receives the correct payment. It handles this process, making sure that trades are completed correctly and on time. This ensures that there are no delays or mistakes in delivering stocks, money, or other assets.
Professional Clearing Member (PCM): Orbis acts as a Professional Clearing Member (PCM), which means they take responsibility for making sure trades are properly processed and settled. They follow strict rules to keep the market safe and stable. As a PCM, it ensures that transactions are handled securely, reducing risks for traders and investors. Their role is important in maintaining trust and confidence in the financial system.
The role as a clearing member is critical for the smooth functioning of the financial markets. By ensuring that trades are settled efficiently and securely, they contribute to the overall stability and integrity of the financial system. They act as an intermediary, managing the risks associated with trading and ensuring that all parties meet their obligations.
Orbis is registered with SEBI as a Registrar and Transfer Agent. This involves maintaining records of share ownership and facilitating the transfer of shares between investors. This role involves maintaining records of share ownership and facilitating the transfer of shares between investors.
Record Maintenance: It ensures that all records of share ownership are kept accurate and up to date. This includes tracking who owns which shares, recording any changes in ownership, and maintaining proper documentation. By keeping precise records, it helps companies and investors stay informed about their holdings and prevents errors or disputes in ownership records.
Transfer of Shares: When investors buy or sell shares, the company ensures that ownership records are updated smoothly and correctly. This transfer process is essential in the stock market, as it guarantees that the right person is registered as the new owner of the shares. It facilitates these transfers efficiently, making sure there are no delays or mistakes in the process.
Client Satisfaction: It focuses on providing high-quality service to its clients by ensuring efficiency, accuracy, and reliability in its RTA services. By delivering smooth record maintenance and share transfer processes, it aims to enhance customer satisfaction and build trust with investors and companies. Their commitment to excellent service makes it easier for clients to manage their investments with confidence.
Expansion: Orbis has been growing its RTA business by expanding its client base and service offerings. This indicates that more companies and investors are choosing Orbis for their record-keeping and share transfer needs. By expanding its reach, they continue to strengthen their position in the financial services industry and provide better solutions to its clients.
In summary, Orbis is a one-stop solution for Registrar and Transfer Agent services that are essential for the smooth functioning of the securities market. They handle crucial administrative functions related to share ownership and transfers, while maintaining compliance with regulatory requirements and striving for client satisfaction through advanced technology and efficient processes. They are a vital part of their commitment to providing comprehensive financial services to its clients.
Orbis provides a variety of trustee services, which means they act as a trusted third party to oversee and manage financial agreements. These services ensure that financial transactions are handled fairly, securely, and according to the rules. It offers these services through its subsidiary, Orbis Trusteeship Services, which is officially registered with SEBI as a ‘Debenture Trustee.’ This means they are authorized to manage and oversee financial agreements related to bonds and other investments.
Range of Services: Orbis plays different roles as a trustee to help investors and companies complete financial transactions safely. Some of their key services include:
Client Focus: It designs its trustee services to give clients peace of mind. By handling the legal and administrative aspects of financial agreements, it allows investors and businesses to focus on their core financial goals without worrying about complex paperwork or legal issues. Their expertise and reliability make them a trusted partner in the financial industry.
Comprehensive Financial Services: By offering secure and compliant trustee services, it helps ensure fairness and stability in financial transactions. Their role as a neutral third party helps protect investors and businesses, making financial agreements more secure. As part of their broader financial services, Orbis aims to provide a one-stop solution for investment and financial management needs.
Orbis Financial Corporation Limited earns money from different sources, and one of the most important is other operating revenue. This refers to the extra income the company generates from activities related to its business, aside from its main services.
A large part of this revenue comes from interest income, which means it earns money by keeping funds in the bank, managing its own cash, and investing in government securities.
1. Interest on Bank Deposits: One of the biggest contributors to Orbis’s revenue is the interest it earns on bank deposits. When the company deposits money in banks, it earns interest—just like how individuals earn interest on their savings accounts, but on a much larger scale. For FY 2024, it earned a major portion of its income from this source. In fact, interest from bank deposits made up 66.66% of the total revenue from services. This shows that interest earnings are not just a small side income but a crucial part of the overall business model.
2. Treasury Operations: Orbis does not just leave its money sitting in the bank. Instead, it actively manages funds through treasury operations to maximize earnings. Treasury operations involve handling two main types of funds: Client Cash Collateral – This is money that Orbis holds on behalf of its clients as security (or collateral). Instead of keeping this money idle, Orbis deposits it to earn interest. Company’s Own Funds – Orbis also invests its own money. By managing these funds wisely, Orbis ensures a steady flow of earnings while keeping its finances strong.
3. Interest on Securities : In addition to bank deposits, Orbis earns interest by investing in bonds and government securities. These are low-risk investments that pay interest over time. While this is a smaller portion of the revenue compared to bank deposits, it adds another layer of stability to the company’s income.
End-to-End Solution Provider: Orbis aims to be a comprehensive, end-to-end solution provider for a varied category of institutional and retail investors, including FPIs, FDIs, mutual funds, endowments & trusts, high-net-worth individuals, AIFs, stockbrokers, private bankers, and portfolio managers. This is not merely offering a suite of services but integrating them to provide a seamless experience for a diverse clientele. This is supported by the fact that Orbis is a registered custodian with SEBI and a clearing member in all market segments.
Proactive Fraud Prevention: Orbis has moved beyond reactive fraud measures to a proactive "fraud immune system". This system uses machine learning and AI algorithms to detect anomalies and patterns indicative of fraud and employs real-time analytics to prevent losses before they occur. This approach is a step up from traditional, manual review-based systems. Balancing this with a seamless client experience is a key part of this approach, ensuring that security is integrated into tech-enabled client journeys in a user-friendly way.
AI-Driven Decision Making: The company uses AI models to analyse vast datasets with speed and accuracy, allowing for deeper insights into market trends, customer behaviour, and risk profiles. This is more than just data analysis; it's about using AI to inform strategic decisions, not just in fraud detection, but across the business.
Comprehensive Risk Management: Orbis manages various risks including credit risk, which arises from counterparty failures in transactions involving derivatives and loans; operational risk, stemming from internal system failures and external events such as legal or regulatory challenges; liquidity risk, where the company might not be able to meet financial obligations; and technology risk, related to IT system operation and data security. The company evaluates its business practices to ensure compliance with legal and regulatory standards.
Growth in Assets Under Custody (AUC): Orbis has demonstrated growth in its assets under custody, reaching Rs. 1,23,440 crore in FY24. This is a considerable increase of 52.10% from the Rs. 81,160 crores reported in the previous financial year. This metric is a crucial indicator of Orbis's expanding operational scale and the increasing trust placed in the company by its clients. It reflects the company’s capacity to manage a large volume of assets and suggests a growing market presence.
Profitability and Earnings: :The company’s revenue from operations has shown consistent growth, increasing from Rs. 294 crore in the previous year to Rs. 424 crore. This steady increase reflects Orbis’s expanding client base and its ability to deliver effective services, reflected in the growth in the service segment. Orbis has shown strong profitability, evidenced by a Profit After Tax (PAT) of Rs. 141 crore in FY24, marking an increase from the Rs. 89 crore PAT in the previous year.
Operational Scale and Trading Volumes: The company has seen an increase in its operational scale, with average daily volumes across cash and derivative markets reaching Rs. 13,000 crores, demonstrating a high level of trading activity facilitated by Orbis. This volume is an indication of the company’s presence in the market and the trust it has garnered from its clients and trading partners.
Strategic Capital Raising: The company raised additional capital at Rs. 27 per share in FY21, and also issued shares at a premium during the year, indicating its ability to attract investors and expand its capital base.
Consistent Dividend Payout: Orbis has shown a commitment to rewarding its shareholders by declaring a dividend of Rs. 1 per equity share for FY 24, an increase from the previous year's dividend of Rs. 0.80 per share. This consistent dividend payout reflects the company’s profitability and its focus on returning value to investors.
Geographic Revenue Diversification: While the majority of its revenue is generated from India, the company also earns revenue from international markets. For the year ended FY 24, revenue from outside India amounted to Rs. 17.31 crores from outside India and Rs. 406 crores from India.
Strategic Locations: The company has strategically established its presence in key locations including Gurugram, Mumbai and GIFT City, Gujarat. This allows for effective market reach, and global outreach, providing a competitive edge to financial services and technology-related activities. The GIFT City location enables Orbis to strengthen its global reach and offer competitive financial services.
Multi-Accreditation and Regulatory Compliance: Orbis holds multiple accreditations with SEBI, and has successfully maintained compliance with SEBI and RBI regulations, including the guidelines on cyber resilience. These accreditations and adherence to regulations signify the company's commitment to maintaining the highest operational standards and building a reliable brand in the financial services industry.
Trusted Partner: Orbis aims to be a trusted partner for its clients, offering high-quality, personalised investor services and helping them maintain regulatory compliance. By acting as a safekeeper, facilitating client investments, and providing portfolio insights, they aim to build long term relationships with their clients. The company is committed to building a reliable brand name within the financial services industry.
Client-Centric Approach: The company demonstrates a commitment to providing customised solutions to its clients. This focus on personalised service and client satisfaction sets it apart from companies that offer more standardised solutions. The company aims to provide a comprehensive suite of services ensuring meticulous asset management, accurate reporting, and compliance with regulatory requirements.
In conclusion, Orbis Financial Corporation has positioned itself as a strong contender in the financial services industry by providing comprehensive, technology-driven solutions, demonstrating a commitment to proactive risk management, and adhering to the highest regulatory standards. These attributes combined with a client-centric approach help it stand out and build a reliable brand in the financial services industry.
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