The Hindu Business Line : HSBC group to invest $50.6 m more in India

THE HSBC group would be pumping in $50.55 million into its India operations. The company would be setting up a wholly owned non-banking financial company (NBFC) and increase its holding in two subsidiary companies from the existing 75 per cent to 100 per cent.

The company has been permitted by the Ministry of Finance to inject an additional capital of $30 million by HSBC Investment Bank Holding BV (HIB BV) into NBFC and sale of shares of HSBC Securities and Capital Markets (India) Pvt Ltd (HSCI) by HIB BV to NBFC at par value of $ 20.55 million, Government sources told Business Line.

The group is in the process of incorporating NBFC in India in accordance with the special provisions of NBFCs under the Companies Act, sources said.

The group is also increasing HSBC's shareholding in HSCI and its two subsidiaries, namely, HSBC Primary Dealership (India) Pvt Ltd (HCPD) and HSBC Asset Management (India) Pvt Ltd (AMIN) from 75 per cent to 100 per cent.

The group is also planning to move ahead with its plan for the redemption of preference shares worth Rs 25 crore issued by HSCI. Official sources said the proposed NBFC has also been permitted to set up other subsidiaries in the financial services segment as may be required from time to time for carrying out its activities.

The company has informed the Finance Ministry that the total capital invested by the HSBC Group in the financial services segment would be $50.55 million. Out of this, $20.55 million would be invested in HSCI and another $30 million in the proposed NBFC, officials said.

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