Hsbc Ends Marriage With Batlivala & Karani

HSBC Investment Bank Holdings BV (HIB BV), a wholly-owned unit of HSBC Holdings Plc, said on Monday it was changing local partners in its local stock broking firm.

HIB BV holds 51 percent in HSBC Batlivala & Karani Securities, which was formed some four years ago in partnership with Manoj Murarka and his sister Rashmi Agarwal, who together owned the remaining 49 percent in the firm.

The brother-sister duo would now sell off their stake to another Indian group and no longer hold any position in the broking firm. The decision to separate with Manoj Murarka and family has been taken amicably.

According to Fergus Fleming, managing director, HSBC B&K, the company is committed to India as far as stock broking is concerned. We have had discussions with a few potential partners and are currently finalising the fresh venture. The new venture will continue to have a majority stake by HSBC.

We are looking for partners who would hold minority stakes in the company, he told Business Standard.

Commenting on the relationship shared with Manoj Murarka, Fleming said that it was mutually beneficial.

We are one of few foreign brokerage firms that justify staying here in India through our performance. We are among the top brokerage firms in the country as far as foreign business is concerned, he added.

The new minority shareholders would not be involved in the management of the company and would grant HIB BV a call option on the shares acquired. HIB BV would ensure that the new shareholders would receive a fixed rate of return on the share purchase price.

Fleming emphasised that they would continue to depend on the local expertise in stockbroking for everything. However, the management control shall rest with HSBC.