The Hindu Business Line : STCI to enter portfolio management

THE Securities Trading Corporation of India Ltd (STCI), will soon enter portfolio management and equity trading business to augment its income stream.

The corporation has already received approval from the RBI and SEBI for starting portfolio management service (PMS) in exempted provident funds as part of PMS, Mr R.V. Joshi, Managing Director, STCI, told Business Line.

STCI's expertise lies in the portfolio management of institutions dealing in fixed income securities, which include notified exempted provident funds of big corporates and PSUs that have their corpus in excess of hundreds of crore. Portfolio management in the area of equities or for small and retail investors will not form a part of this undertaking, Mr Joshi said.

For equity trading, the corporation has already received clearance from its board. It will soon seek the RBI permission, said Mr Joshi.

STCI's diversification plan has been formulated considering the present scenario of firming-up of interest rates, as this would make forthcoming profits weaker than those earned in the past soft interest-rate scenario. The plan is still in its incipient stage, with the board of directors' nod received about a week ago.

Initial investment in the equity business venture will be about Rs 25 crore to Rs 30 crore, said Mr Joshi.

More Stories on : Financial Institutions | Stock Markets | Diversification

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