IIFL suspends brokerage operations in Singapore

Diversified financial services firm India Infoline (IIFL) Group today said it is "suspending" its brokerage operations in Singapore due to low trading volumes.

"We have sought a temporary suspension of our trading activities on the Singapore Exchange," IIFL spokeswoman Poonam Saraogi said.

"This is part of the overall revamping programme of our operations in Singapore which will see suspension of brokerage business. However, we will continue with our China and Singapore research and other advisory and fund management services, from the city state."

When asked about specific reason for the closure, she said it was due to lower-than-expected equities trading volumes in Singapore.

About the possibility of jobs loss, she said that some people would lose jobs but did not put an exact number to it.

"I am not sure of the number of people losing their jobs. But, yes it will involve some jobs as we are downscaling our operations. I am also not sure about the exact number of people employed in our Singapore office," she said.

The Carlyle Group has a stake in the city-based IIFL. The Washington-based buyout firm's private equity unit in Asia had accumulated a 9% stake in the brokerage last October for an undisclosed sum.

The IIFL move comes amidst similar actions taken by banks and brokerages in Asia Pacific that joined their global rivals which have cut over 2 lakh jobs since 2011 as the European debt crisis triggered a slowdown in the region.

Japan's Daiwa Securities, South Korea's Samsung Securities and Australia's Macquarie Group have reportedly slashed their employee headcounts this year.

Earlier in the day, the IIFL group said as part of its increased focus on investment banking, it has roped in Nipun Goel as President of its investment bank and said it will double its employee count at the i-banking division.

IIFL shares rose 10.75% to Rs 72.65 today on the BSE.