The Hindu Business Line : Doha Bank buying 49% stake in Select Securities

Kochi May 11 Doha Bank of Qatar is buying 49 per cent stake in the Kochi-based Select Securities Ltd, which owns the brokerage network under the brand name Investnet.

"This is our first investment in India. We see India as an emerging super-power in the making. Particularly, we perceive financial services as the hottest growth zone. With a large clientele of NRI customers, Doha Bank already has strong links with India. We see this tie-up as a major strategic step towards our global vision," Mr R. Seetharaman, Deputy CEO of Doha Bank, said.

"At this stage in the growth of financial services, we felt the need for a strong partner, who can commit resources and provide necessary management guidance," said Mr Prince George, Chairman and CEO, Selectgroup. "We are confident that Doha Bank, with its expertise, will be able to provide the necessary impetus to take Investnet to the next orbit."

Targeting product

Though Doha Bank sees this tie-up as an entry into the lucrative financial services industry in India, it offers a host of synergies for them as well. "This tie-up will enable us to offer a wider product range and value-added services to our customers, especially to our expatriate customers from India," said Mr Seetharaman.

NRIs are showing great appetite for capital market products. There is wide popularity among NRIs for mutual fund products and Portfolio Management Services schemes. There are many Indians who participate in the secondary market through Portfolio Investment Scheme route, a press release issued here said.

"The tie-up will enable us to market our services in West Asia in a big way. We already have a presence in the West Asian markets and membership in Dubai Gold and Commodity Exchange-DGCX. With support from Doha Bank, we are planning to open more branches in major cities," said Mr Binny C. Thomas, Director in charge of West Asian operations.

FII licence

Doha Bank is also planning to commence FII operations in the Indian capital market. It has already approached SEBI for FII licence. Through a mutual funds floated in West Asia, it is also planning to channel investments into Indian equity market, the release said.

"In line with our investment policy, we are now focusing on developed and emerging markets, which offer tremendous opportunities. We have a very ambitious plan for investments in India; we are closely watching the regulatory changes taking place here,'' said Mr Seetharaman.

He observed that the GCC countries are consciously pursuing diversification, efficiency building, and creation of long-term prosperous economic models, capable of absorbing any sector-specific shocks. The GCC countries have been adopting aggressive liberalisation policies both in the financial and industrial sectors.

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