Recent days have seen a clutch of local brokerage houses, including Way2Wealth, Fortune Financial Services, Antique Stock Broking, Centrum Capital [Get Quote], Avendus Capital and Ambit Capital, luring analysts and senior executives from foreign brokerage houses and leading local equity broking firms by offering meaningful equity stakes.

Industry officials said the offer of Esops (employee stock options) or preference shares had become a norm in the industry as soaring valuations of broking houses made such offers tempting for senior executives to leave their existing jobs in MNC broking houses to build teams in new and upcoming brokerages.

The stock market listing by Motilal Oswal Financial Services, Relegare and Edelweiss Capital in recent weeks has added to the lure as hefty valuations of these firms on the bourses have made several top executives crorepatis overnight.

"Till now, people got only good salaries. But wealth was not created. The rising valuations of brokerage houses on the market is making it easier for smaller brokerage houses to attract talent from big houses by offering decent stakes," said an industry official.

The trend was started by India Infoline [Get Quote] when it was able to attract four senior CLSA officials into its fold by offering them stakes worth several crores.

Ambit Capital, which is the broking arm of the Ambit Group, is offering Esops in the group company. This will see senior executives of the broking firm holding shares in the Ambit Group, which includes Ambit Corp Finance and Ambit Private Equity, in a move to offer employees bigger value for their stakes.

Recently, Rahul Rege, who was in charge of the retail broking business of Brics Securities, left the organisation to join Centrum Capital, a Mumbai-based brokerage, as its CEO of retail operations.

At least 25 people are learned to move out from Brics Securities with him. (Foreign brokerage Lehman Brothers had acquired the institutional business of Brics Securities.)

"Offering equity stakes is perhaps the only way to attract and retain talent," said Rege, who will drive Centrum's retail operations.

Centrum Capital also appointed Meharboon Irani, who was vice-president (equity) at Darashaw & Co, as its vice-president, portfolio management services.

Multinational and branded local firms have borne the brunt of the new trend. HSBC Securities, Kotak Securities and E*Trade-controlled IL&FS Investsmart have seen senior executives leaving in groups.