DSPML sets up non-banking finance arm

DSP Merrill Lynch (DSPML) has made a foray into fund-based activities through its newly formed non-banking financial company (NBFC), DSP Merrill Lynch Capital Ltd. It will focus initially on securities-based lending to its parent's private banking clients.

"We are assessing the growth opportunities in all our major business segments. The NBFC is aimed at facilitating our private client platform by offering fund-based products to our high networth clients. It is still in the nascent stage," said Amit Chandra, joint managing director, DSPML.

DSPML Capital, the wholly owned NBFC of DSPML, is also into the money market to raise Rs 500 crore of short-term debt for lending against securities.

The integration of securities-based lending along with fee-based financial advisory services to high networth individual (HNI) clients is expected to reinforce DSPML group's product suite of wealth management services.

DSPML is a leading investment banking and securities firm in India. It is a joint venture with Merrill Lynch & Co, an international capital raising, financial management and advisory company. Merrill Lynch has 40 per cent equity stake in DSPML.

DSPML's private client group offers investment advisory, broking and depository services to meet its clients' financial needs. Its client base consists of high networth individuals (HNIs), professionals, promoters of business groups, corporate executives, trusts and private companies.

DSPML was adjudged the best private sector bank in India in Euromoney magazine's private banking poll released in January 2005.

The growing number of rich Indians is fulfilling the appetite of private banking service providers. India is estimated to have 70,000 HNIs with financial assets of at least $1 million.