The Hindu Business Line : StanChart ups stake in Indian arm

Mumbai, Dec. 12 Standard Chartered Bank has increased its stake in Standard Chartered-STCI Capital Markets Ltd (formerly UTI Securities Limited) to 74.9 per cent.

It announced on Friday that it completed the acquisition of an additional 25.9 per cent stake from Securities Trading Corporation of India (STCI).

Standard Chartered Bank (StanChart) bought 49 per cent of UTI Securities Limited from STCI in January.

The move by StanChart to increase its stake is in line with its original intent reflected in the contract, under which both parties provided for the stake to be increased in stages to 100 per cent by 2010. Regulatory approvals have been received for the additional stake and change in the controlling interest in Standard Chartered-STCI Capital Markets Ltd, said a press release from Standard Chartered Bank.

Mr Neeraj Swaroop, Regional CEO-India and South Asia, Standard Chartered Bank, said this strategic initiative is a reflection of StanChart’s long-term commitment to the Indian market.

Mr Somasundaram P.R., Managing Director, Standard Chartered Capital Markets, said this is an excellent deal even with the fall in the stock markets. “Going ahead, this vehicle will be our growth engine,” he said.

Standard Chartered-STCI Capital Markets Ltd offers its services under the brand Standard Chartered Wealth Managers. The company plans to grow its retail and institutional stock broking and investment banking business. It is planning to offer additional products for retail customers and more research-based services and products for institutional stock broking.

Retail business comprises about 60 per cent of the business and institutional and investment banking make up 40 per cent, and is likely to remain the same, Mr Somasundaram said.

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