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India Infoline Finance Ltd (IIFL) will de-merge its brokerage business and transfer into the group’s existing distribution company, India Infoline Distribution Ltd. According to company officials, the Securities and Exchange Board of India has approved.
“We have applied for approval in the high court and then we can proceed on this,” said Mukesh Kumar Singh, executive director, IIFL. India Infoline Distribution is an unlisted subsidiary, in distribution of financial products.
IIIFL has applied for one of the new bank licences to be given. The Reserve Bank of India had said it would allow corporate groups, non-banking finance companies and public sector entities to set up a bank only through a wholly-owned non-operative financial holding company. “The objective is that the holding company should ring-fence the regulated financial services entities of the group,” the central bank had said.
