UK-headquartered Standard Chartered Bank is set to become the third foreign player to enter the Indian retail stock brokerage business by buying a 49 per cent stake in UTI Securities for Rs 140-150 crore.
UTI Securities is currently fully-owned by Securities Trading Corporation of India (STCI). Sources said an agreement would be signed between the two parties in the coming week, probably on Monday.
The stake price values UTI Securities at Rs 300-325 crore. STCI, a primary dealer in government securities, had bought the entire UTI Securities stake for Rs 265 crore last year from Specified Undertaking of UTI, the trading arm spun off from the financial institution UTI in 2001-02.
The deal with Specified Undertaking of UTI requires STCI to have a minimum lock-in of its 51 per cent stake in UTI Securities for three years.
Read more in The Business Standard article.
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