Financial Daily from THE HINDU group of publications
Wednesday, Mar 10, 2004
Financial Daily from THE HINDU group of publications Wednesday, Mar 10, 2004 |
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Money & Banking
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Overseas Investments SBI Gilts-DFHI combine plans to invest in global securities Rukmani Vishwanath
Mumbai , March 9 THE country's largest primary dealer in government securities, created by the merger of SBI Gilts and DFHI, is planning to go global. The new entity, which will become operational from April, will be seeking the permission of RBI to invest in overseas securities. The aim is to expand trading activity and to take international exposures, said an official. Initially, the PD will explore the scope in Asian countries where obtaining regulatory approvals are comparatively easy. The merged entity, which may be christened `SBIDFHI', may have to shore up capital separately, because as per existing regulations, it may not use its existing capital to invest abroad. The new PD which will have a combined networth of Rs 1,000 crore and a portfolio size of around Rs 2,000 crore, will also look at expanding its presence across the country by setting up additional branches by the end of this fiscal. "The plan is to expand nationally in a wider scale and reach the ultimate institutional investors even in remote areas. After a stabilisation period of around six months, roughly 4-5 branches may be set up in some State capitals, where neither of the PDs currently have a presence," a source close to the development confided. At present, both SBI Gilts and DFHI together have around six branches. The new PD is expected to recruit more staff later this year, sources said. State Bank of India, which will hold around 57 per cent of the new PD, currently holds around 85 per cent in SBI Gilts and over 55 per cent in DFHI.
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