Nomura Financial Advisory and Securities (India) Private Limited (‘Nomura India’), a wholly-owned subsidiary of Nomura Holdings, Inc. (‘Nomura’), has launched its Equity Sales and Trading and Investment Banking operations in India.
In October 2008, Nomura, a global investment bank, acquired the majority of Lehman Brothers’ employees in India, including the equities sales and trading, equity research, fixed income liquid markets sales and trading, and investment banking teams. By integrating the former Lehman Brothers India franchise and obtaining its merchant banking license and stock exchange memberships, Nomura India looks to strenthen its capabilities in India through a wide range of onshore financial solutions spanning securities brokerage, securities underwriting and advisory services.
Takumi Shibata, COO of Nomura Holdings, commented: “India is one of the most important regions for Nomura’s global expansion. Under the leadership of Vikas Sharma, President and CEO of Nomura India, and with a strong team combining Nomura and former Lehman Brothers’ expertise in India, I am confident that our footprint in India will significantly expand.”
Currently, Nomura employs over 2,600 people in India, including its global services hub in Powai, headed by RK Rangan, which supports Nomura’s infrastructure, systems and processes globally. Tarun Jotwani, former chairman and CEO of the Lehman Brothers India entity, now serves as head of global fixed income for Nomura and is based in Tokyo.
Global Markets – Equities and Fixed Income
Nomura India’s initial focus is on the sales and trading of Indian equities, futures and options, and the firm is in the process of seeking necessary regulatory approvals for offering direct market access (DMA) to its institutional clients in the second quarter of calendar year 2009.
Lehman Brothers was among the first firms in India to launch algorithmic DMA, and also brings to Nomura its market-leading capabilities in listed derivatives. The entire former Lehman Brothers Equities and fixed income liquid markets team joined Nomura India, and the combined group is led by Pankaj Vaish.
Nomura also intends to launch a fixed income business in India, on receipt of necessary regulatory approvals.
Nomura India has obtained its merchant banking license from the Securities and Exchange Board of India (SEBI) allowing the firm to provide investment banking services. Led by Vikas Sharma and Surojit Shome, deputy head of investment banking, India, and with the addition of the former Lehman Brothers investment banking team, Nomura India will look at offering its Indian clients capital raising and corporate finance solutions.
Vikas Sharma commented: “With the establishment of our onshore business platform, Nomura India will be able to further provide client-centric, world-class financial solutions that bridge India’s capital markets and the world.”
Nomura claims to have advised on six transactions over $1 billion each for India-related corporates, and completing 5 of the 6 largest-ever ADRs.