ICICI Bank in talks for tie-up with Penson, Russell

The ICICI bank will soon tie up with US-based Penson Worldwide, a broker services and trade clearing company, for its overseas equity investment product. The bank will also tie up with Russell Investment group for its overseas mutual fund.

On a visit to Ahmedabad, Anup Bagchi, head of international retail products, ICICI Bank, spoke to Business Standard on their plans for tie-ups with the broking firm and multi-managing investment company for its new financial product.

Bagchi said: "We are in talks with US-based Penson Worldwide for a possible tie-up for our new equity investment product".

The Bank will launch a new equity investment product, whereby, an Indian resident can use the ICICI Bank's facility to invest in the overseas companies' stocks listed on foreign stock exchanges.

The bank will also provide options for its clients to invest in foreign mutual fund products and for that, it will tie up with Russell Investments.

Russell Investment group, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries.

It also plans to come up with a product for investment in overseas real estate through its overseas real estate mutual fund by mid-2007.

Bagchi said that its overseas equity investment product would be launched in January 2007 for which ICICI was negotiating with Penson.

The bank's customer will be able to access the overseas stock exchange, including New York Stock Exchange (NYSE) and London Stock Exchange (LSE) for buying and selling of foreign companies' stocks using the ICICI Direct online trading facility. Presently, ICICI Direct online trading facility is used for investment in only Indian equities.

The bank is keen to tap a niche segment of Indian investors, who are interested in investing in foreign company's stocks and mutual fund, after the Reserve Bank of India (RBI) allowed Indian investors to remit up to $50,000 per financial year (increased from $25,000) for any current or capital account transactions or a combination of both.