Monday, December 10, 2007

Karvy to set-up NBFC, plans London, Singapore foray

Karvy Stock Broking (KSBL), plans to float a Non-Banking Financial Company (NBFC) by March next year. Karvy, in which ICICI Ventures and Baring Equity recently picked-up a combined 25-per cent stake, is likely to approach the Reserve Bank for the necessary regulatory approval within the next 2 months for setting up the NBFC, a source close to the development told here.
"Karvy will apply for the NBFC license in the next 1-2 months," the source said, adding that "the NBFC is expected to get operational by March." Last month, ICICI Bank's investment arm, ICICI Ventures and Baring Private Equity Asia (BPEA), had together invested nearly Rs 500 crore in KSBL, to acquire a nearly 25 per cent stake in the firm.

Karvy broking currently has 580 offices in the country and plans to add another 170 branches in the next one year, the source said. A part of the Karvy group, KSBL and its subsidiaries offer services in investment banking, stocks, commodities, mutual funds, insurance and depository services. The group also plans to expand globally and has zeroed in on Singapore and London for its foray. "The company will be entering the Singapore and London markets in the next one year, where it will look at investment opportunities in various instruments such as foreign securities and commodity derivatives," the source said. Presently, the group has a representative office in Dubai and a group company in New York
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