Sbc-Ubs Operations Set To Kick Off In June

The newly merged entity of the SBC Warburg and Union Bank of Switzerland will kick off Indian operations in June. The final approval was signed last week in Switzerland, top SBC officials said.

The thrust for the new entity - the United Bank of Switzerland - will focus around stock broking, project finance and international securities operations, the India chairman of the new entity Euan MacDonald said.

Commenting on the new set-up MacDonald said the new entity will form part of the Asian framework. ``The divisional reporting side will remain strong. There will also be line reporting within our own divisions, with information links with our Singapore and London offices,'' he said.

 

As part of its domestic brokerage operations, the FII clients will be brought in to enhance stock broking operations in India through the existing broking facilities of UBS (which holds two broking seats through a Bombay Stock Exchange and National Stock Exchange membership).

According to sources, UBS has been rated amongst the top five foreign institutional investors (FIIs) dealing houses, since commencement of operations.

The project finance advisory activities will revolve around deals linked to the infrastructure projects, keeping in mind the focus which the government has placed on this sector.

In the international securities segment, the focus will be on the debt market operations, convertible bonds, private placements and equity markets.

The CEO of the new firm will be Ajay Sondhi, formerly with Barclays Capital.

The head of equities for the firm would be a foreigner, Reto Hassli.

SBC has been keen to participate in the government's disinvestment programme and has been shortlisted for the Concor GDR mandate.

A final decision is awaited from the core group in the coming days, on whether they would go ahead with the offering at this stage.

It may be noted that three of the key disinvestment proposals - GAIL, IOC and Concor - stand in a limbo for different reasons but are expected to hit the international markets over the next 6-9 months.

UBS has been active in banking activities like leasing, finance and stock broking through its subsidiary UBS Securities whereas SBC Warburg is involved in investment banking.

"The new bank will be less keen to take new assets and focus more on investment banking. This will include activities like seeking GDR mandates, corporate finance and other services like trade financing and gold dealing," sources said.

SBC Warburg had earlier announced plans to expand its secondary market operations by seeking membership of the National Stock Exchange.

SBC Warburg and SunGrace Mafatlal floated a company that sought the membership of the National Stock Exchange.