Il & Fs Venture With Hg Asia To Fold Up

The joint venture between Hoere Govett Asia and Infrastructure Leasing & Financial Services (IL&FS) will soon cease to exist as the two partners have decided to part ways.

HG India Securities, a subsidiary of H G Asia,will concentrate on its traditional business -- stock broking. It is also a satellite dealer for the wholesale debt market.

Under the new arrangement, the sattelite dealership will be transferred to a hundred per cent subsidiary of IL&FS.

We are currently working out on the modalities involved in effecting the transfer of this business. Once that is done, we will make a formal announcement, a top-level HG Asia source said.

 

The source added: HG Asia has always been into stock broking and equity dealing has been its stronghold. We will have a 75 per cent stake in the venture with IL&FS and will hold the entire equity secondary market operations. The joint venture had received a nod for satellite dealership in government securities.

When asked if HG Asia would be interested in fixed income business, the source said that, for the time being, the FII will concentrate on its equity operations. We will independently venture into the fixed income business at a later stage. We intend to concentrate for the moment on building up a clientele for our equity operations.

HG Asia is a member of BSE as well as NSE through the subsidiary H G Asia Securities where HG Asia will have a 75 per cent stake and the rest will be held by IL&FS.