Nomura Pay-Off Row Stalls Venture With Uti Securities

The proposed joint venture between UTI Securities Exchange and Nomura Interna-tional has been put off for the time being due to Nomura Securities' involvement in a pay-off controversy in Japan.

The UK-based Nomura International (a subsidiary of Japanese investment bank Nomura Securities) had signed a memorandum of understanding with the UTI subsidiary in 1995. Sources disclosed that it was even informally decided that Nomura would pick up a 40 per cent stake in UTI Securities at a price of Rs 25 per share. This would have increased the asset base of the joint venture company by another Rs 15 crore from the present Rs 30 crore.

 

However, the fate of the proposed joint venture became uncertain in March 1997, after Nomura Securities admitted that two of its directors had illegally paid a client $417,600 as compensation for investment losses. The client was subsequently revealed to have ties with