The Hindu Business Line : Centrum’s US office gets approval to operate as broker in NYSE

Mumbai, Nov. 26 The US office of the Centrum group has received regulatory approval to operate as a broker/dealer on New York Stock Exchange, the Indian company announced on Wednesday.

The Centrum group, which offers a range of financial services in India, said it would go ahead with its expansion plans both domestic and international, notwithstanding the current market conditions.

Eye on M&As

“With the approval, we will be able to showcase Indian companies in the American market and also facilitate mergers and acquisitions activity for these companies,” said Mr Devesh Kumar, Managing Director (Equities), Centrum Group.

The company’s US office will be set up in New York.

The group also announced that it has set up an office in London for its European activities.

“Europe will become a capital surplus area and manufactures will start exiting Europe. This would open up opportunities for both M&A and fund-raising activities,” said Mr Kumar.

Back home, the group would expand its Distressed Asset and Resolution Group.

“One can expect non-performing assets (NPA) to rise in the next two quarters. So this would be an opportune time to get into the business of acquisitions and resolutions of NPAs. In such a depressed market these funds are easily available,” said Mr Pio L. Fernandes, Senior Vice-President, Centrum Capital.

Capital inflows

The Managing Director of equities division said capital inflow would start in some emerging markets and India would benefit from this move.

“We expect capital inflows to return to selective emerging markets. India should be a recipient of a significant portion of this, given that the economy is significantly driven by internal demand. Also, we see huge opportunities for global acquisitions by Indian corporations,” Mr Kumar said.

The rupee also stands to gain after stability returns to the markets.

“Once the pace of global de-leveraging moderates and some level of stability is established in global capital markets, we expect an appreciation in the Indian rupee, and improvement in domestic liquidity leading to a recovery in the Indian stock indices. This will boost domestic wealth management and real estate markets as well,” he added.

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