Reliance Capital (RCAP) on Friday said its securities business arm will buy the broking and distribution vertical of the company as part of the asset monetisation plan for Rs 164 crore.
Management team of the Reliance Securities group has entered into a binding agreement for buying out the broking and distribution business from Reliance Capital, subject to regulatory and other customary approvals, RCAP said in a regulatory filing.
Reliance Securities is 100 per cent subsidiary of Reliance Capital.
Reliance Securities' business includes retail and institutional broking, third-party distribution, proprietary trading and structured products.
"This management buyout transaction is part of our ongoing asset monetisation plan and also reflects our stated intent to focus primarily on life insurance and general insurance business as a way forward," a Reliance Capital spokesperson said in the filing.
The sale process is expected to be completed by March 31, 2020, the company said.
Shares of RCAP fell 12.28 per cent to Rs 17.50 on the BSE.
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