Attracted by the tremendous potential and phenomenal growth achieved by Indian retail brokerage firms in recent times, a clutch of foreign majors are mulling an entry into the market.
Foreign majors such as the Citigroup, Societe Generale (SocGen), BNP Paribas, Standard & Chartered Bank and Australia-based Macquarie Bank are understood to be contemplating picking up equity stakes in Indian retail brokerages as an easy route to enter the market.
A buoyant stockmarket despite the odd hiccup combined with an increasing appetite for equities among investors, tech convenience of online trading and falling brokerage fees have proved to be the major growth drivers of the industry.
The potential of the Indian market was higlighted recently when nearly 19 suitors stepped forward to claim a stake in leading retail brokerage Sharekhan, amongst the top three such firms in the country.
Read more in The Economic Times article.
Showing posts with label Standard Chartered Bank. Show all posts
Showing posts with label Standard Chartered Bank. Show all posts
Sunday, May 20, 2007
Friday, May 18, 2007
LIC shortlists partners for credit card venture
Life Insurance Corporation (LIC) of India has shortlisted ICICI Bank, HDFC Bank, UTI Bank, Standard Chartered Bank and Visa as partners for its credit card venture.
Apart from the shortlisted banks, the corporation may also rope in one more partner, probably Corporation Bank, to ensure that the credit card company is not a subsidiary. LIC wants to call shots in the card company, but for regulatory reasons does not want the proposed venture to be a subsidiary.
After putting its plans on the back burner for a year, LIC started moving again in 2007. Last month it appointed a chief executive Hemant Bhargava for the credit card project. Mr Bhargav had earlier headed LIC’s microfinance and international businesses.
Read more in The Economic Times article.
Apart from the shortlisted banks, the corporation may also rope in one more partner, probably Corporation Bank, to ensure that the credit card company is not a subsidiary. LIC wants to call shots in the card company, but for regulatory reasons does not want the proposed venture to be a subsidiary.
After putting its plans on the back burner for a year, LIC started moving again in 2007. Last month it appointed a chief executive Hemant Bhargava for the credit card project. Mr Bhargav had earlier headed LIC’s microfinance and international businesses.
Read more in The Economic Times article.
Tuesday, May 15, 2007
STCI to sell UTI Sec stake for Rs 275 crore
Securities Trading Corporation of India (STCI), a primary dealer in government securities, will sell its entire stake in UTI Securities to Standard Chartered Bank in two years at a pre-determined price of Rs 275 crore, according to the memorandum of understanding (MoU) signed between both the parties.
The complete exit by STCI from UTI Securities at a nominal profit of Rs 10 crore after having payed Rs 265 crore to acquire the company from Specified Undertaking of UTI (SUUTI) showed that its decision to enter the retail broking business was a wrong move, said market players.
It is learnt that as per the terms of the MoU, Stanchart will buy 100 per cent stake in UTI Securities in three stages by 2009 for a total consideration of about Rs 275 crore. At a time when the domestic brokerages are attracting huge investments from private equity and foreign players, the UTI Securities deal showed that STCI could not add much value to the business during last one year.
Read more in The Business Standard article.
The complete exit by STCI from UTI Securities at a nominal profit of Rs 10 crore after having payed Rs 265 crore to acquire the company from Specified Undertaking of UTI (SUUTI) showed that its decision to enter the retail broking business was a wrong move, said market players.
It is learnt that as per the terms of the MoU, Stanchart will buy 100 per cent stake in UTI Securities in three stages by 2009 for a total consideration of about Rs 275 crore. At a time when the domestic brokerages are attracting huge investments from private equity and foreign players, the UTI Securities deal showed that STCI could not add much value to the business during last one year.
Read more in The Business Standard article.
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