FIPB clears BNP Paribas' acquisition of Sharekhan

Rejects a proposal by BT Global Communication to acquire remaining 26% in BT Telecom India

The Foreign Investment Promotion Board (FIPB) has approved French financial services major BNP Paribas’ proposed Rs 2,060-crore acquisition of retail-focused brokerage Sharekhan. However, it rejected a proposal by BT Global Communication to acquire the remaining 26 per cent stake in BT Telecom India. 

The French bank had earlier this year agreed to acquire Mumbai-based Sharekhan. BNP Paribas had received regulatory approvals from the Securities and Exchange Board of India, Reserve Bank of India and Competition Commission of India.

The Sharekhan deal was BNP’s second play in the retail broking space. In 2007, the bank had picked up a 34 per cent stake in Kochi-based Geojit Securities.

Besides, FIPB cleared three proposals that would not bring in any foreign direct investment into the country, deferred three proposals and rejected four others. 

BT Global Communications (Mauritius) had sought an approval to acquire the remaining 26 per cent equity and preference share capital in BT Telecom India from Jubilant Stock Holding. That would have increased its shareholding in the Indian company to 100 per cent.