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Mumbai, Sept. 22 There is unlikely to be any immediate change in the Indian operations of Morgan Stanley and Goldman Sachs which are permitted by the US Federal Reserve to become bank holding companies, said analysts.

“It’s Goldman Sachs, the holding company whose status is changing and not the Indian subsidiary which will be under the same regulatory authority,” said a Goldman Sachs official who didn’t want to be quoted.

While in US these banks have become commercial banks which were allowed to accept deposits, in India they have to seek RBI licence to start banking operations.

Currently, Morgan Stanely and Goldman Sachs investment banking operations in India come under SEBI’s regulations.

Goldman Sachs has around 100 people managing their Indian operations. Goldman Sachs (India) Securities Private Ltd based in Mumbai is the subsidiary company.

Goldman Sachs operations in India include investment banking. It has an equity broking license and also operates as a Foreign Institutional Investor (FII) in India.

The group also has a merchant banking licence and was involved with two IPOs of Emaar MGF and UTI Asset Management Company that didn’t finally happen due to bad market conditions

Goldman Sachs Services Private Ltd, another subsidiary based in Bangalore, is engaged in the back office job for the holding company.

Goldman Sachs has offices in Mumbai and Bangalore handling investment banking, global investment research, operations and technology.

Morgan Stanley has several verticals operating in India, besides acting as an FII, the company has mutual fund business and recently it launched private wealth management business.

From 1999 until October 2007, Morgan Stanley operated two joint ventures with JM Financial Group, under the name of JM Morgan Stanley. I

n 2007 Morgan Stanley parted ways from the joint ventures with J M Financial became independent investment banking, sales & trading platform in India under the under the name of Morgan Stanley India Company Private Ltd providing, investment banking, sales & trading, fixed income, commodities and derivative products, as well as research services.

Another company Morgan Stanley Investment Management (MSIM) provides customised asset management services.

Morgan Stanley also acquired merchant banking licence in 2007.

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