Standard Chartered Bank's proposal to pick up 49 per cent stake in broking firm UTI Securities is under the consideration of Foreign Investment Promotion Board (FIPB), reports TV channel CNBC-TV18.FIPB is taking up the Stanchart proposal at a meeting to be held on August 17. So this deal is likely to be cleared today. The financial terms are not known as this post is being written.
UTI Securities is currently owned by Securities Trading Corporation of India, which had put 49 per cent stake in the broking firm on the block. There were several firms like Kuwait's Global Investment House, Citigroup, Macquarie Bank, and Societe Generale in talks with STCI to buy a stake.
Several banks are looking for an entry into broking and financial products distribution, so a firm like UTI Sec offered synergy. STCI bought UTI Sec in February 2006 for Rs 265 crore from the Specified Undertaking of UTI. STCI will sell 49 per cent of it now, and the rest after the lock-in period which will end in 2009.
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