Japan`s Nomura to foray into Indian broking on its own

To begin with, it plans to start off with the institutional brokerage business and eventually get into the retail broking business either through the organic or inorganic route.  Nomura officials declined comment.  Last July, the Tokyo-based company initiated talks with Enam Securities to acquire a significant stake in the Mumbai-based financial services group that is unlisted. However, talks failed to fructify due to differences over valuations and majority control.  Early this month, Nomura signed a non-binding memorandum of understanding (MoU) with Life Insurance Corporation for acquiring a stake in LIC Asset Management Company.  Sources close to the development said that the Japanese company could hold up to 26 per cent in the joint venture.  Nomura, which advised Daiichi on the Ranbaxy investment, has interests mainly in asset management, broking and investment banking globally.  In the recent past, Wall Street investment banking firms like Merrill Lynch, Goldman Sachs and Morgan Stanley took full control of their Indian joint ventures by buying their local partners out. Nomura had presence in the Indian markets earlier but had folded operations in the mid-nineties.  Morgan Stanley projects the brokerage business in India to grow to $3.9 billion by 2015.  Japanese financial services firms, including Daiwa Securities Group, Nikko Cordial Group,  Mitsubishi UFJ Securities, already have representative offices in India.