Standard Chartered Bank has acquired an additional 25.9% stake in Standard Chartered-STCI Capital Markets Ltd, taking its overall stake in the firm to 74.9%. Standard Chartered-STCI Capital Markets Ltd, formerly known as UTI Securities, is a brokerage with presence across the country and offers services like investment banking, fixed income, research, retail equity & derivative broking, portfolio management, etc. Standard Chartered will also invest additional capital of $4.5 million in line with the FDI guidelines with the increase in stake.
The deal is in line with Standard Chartered earlier arrangement to buy a 100% stake in entity by 2010. Standard Chartered bought the 49% stake in July last year for $36 million. The remaining stake is held in UTI Securities is held by Securities Trading Corporation of India (STCI), which bought a 100% stake in UTI Securities in 2006 for Rs 265 crore from Specified Undertaking of UTI (SUUTI). The company currently offers its services as Standard Chartered Wealth Managers.
"This has been a challenging year for the business but the acquisition of an additional stake at this time reflects the underlying confidence of Standard Chartered Bank in the Indian economy as a whole and in the Indian equity capital markets specifically," said Somasundaram PR, Managing Director, Standard Chartered Capital Markets.