Tata Group’s financial arm, Tata Capital, is talking to Japanese securities broker Mitsubishi UFJ Securities Co to handle trading orders for Indian stocks from Japanese investors as well as investment banking services, Nikkei English News. The two companies are expected to sign the memorandum of understanding today. Tata Capital also has a strategic alliance with Japan’s Mizuho Corporate Bank (MHCB) for cooperation in a range of business areas. Mitsubishi UFJ also has tie-up in India with ICICI bank in areas such as corporate finance, asset management business and merger and acquisitions.
Tata Capital and Mitsubishi UFJ will also advise Indian companies in mergers and acquisitions and help them raise funds and advise Japanese firms eyeing M&As in India. Mitsubishi UFJ will start full-scale operations in the Indian stock markets and will use the equity analyst reports published by Tata Capital. Mitsubishi UFJ also plans to invest in the bond markets. Mitsubishi UFJ will also work closely with the investment banking division of Tata Capital and will dispatch its personnel to to this division.
Tata Capital had signed an MoU with MHCB for cooperation in private equity and wealth management in February this year. This agreement was followed by signing a strategic alliance last month in areas such as ninja loans, project and infrastructure finance and treasury products. Japanese brokerage houses are increasingly looking to set up shop and start operations in India. Japan’s Nomura Holdings had started full-scale operations in India, expanding into stock trading and asset management, last month only.
Daiwa Securities, a subsidiary of Daiwa Securities Financial Group, has also commenced broking activities. Daiwa’s India unit is a joint venture with Sumitomo Mitsui Financial Group, which began its operations as the first Japanese broker with a full line-up of services in India in April.