CRISIL has assigned a ‘BQ-2’ grading to Asit C Mehta Investment Interrmediates Limited (ACMIIL). The grading is an opinion on the quality of operations and services provided by the graded stock broker. Brokers are graded on a five-point scale ranging between ‘BQ-1’ and ‘BQ-5’, with ‘BQ-1’ being the highest.

According to Mr. Arun Panicker, Director, Financial Sector Ratings, CRISIL, "The grading centrally factors in ACMIIL’s strong monitoring and risk management systems, standardised processes and procedures and effective outreach to the investor community".

ACMIIL’s risk management systems are characterised by the real time monitoring of client risk exposures by a dedicated team of experienced risk professionals based at the company’s head office. ACMIIL’s risk management team functions independently, and has complete autonomy in the decision-making process. ACMIIL has standardised and adequately-documented business processes. It is one of the first brokerage houses to be certified under ISO 9001:2000 for both equity and debt segments.

Says, Mr. Tarun Bhatia, Head, Financial Sector Ratings, CRISIL, "ACMIIL has demonstrated sustained efforts to broaden its investor base in India by penetrating the smaller towns and cities, which have few organised broking houses".

The grading, however, also factors in ACMIIL’s relatively small size of operations as seen in the moderate client base of around 75,000 customers and small market share in trading volumes. CRISIL believes that the company’s relatively modest current net worth could potentially constrain its growth plans.

About the Company
ACMIIL was promoted by Mr. Asit C Mehta in 1986 as a proprietorship engaged in equity broking. ACMIIL was the first brokerage house in India to be converted into a limited liability company member on the Bombay Stock Exchange. Today, the company services around 75,000 retail customers across 280 locations using its network of business associates (BAs) and web-based portal. Mrs. Deena Mehta, wife of Mr. Asit C Mehta, is the current Managing Director, who is also in charge of the day-to-day operations at ACMIIL. Mrs. Mehta is reputed in the capital markets, and has served as President and Vice-President of the Bombay Stock Exchange. The company has a small market share of 0.5 per cent and focuses on catering to retail investors located in the smaller cities.