Standard Chartered Bank Plc on Thursday acquired 49 per cent stake in UTI Securities Ltd (UTISEL) for around $36 million in an all-cash deal with the Securities Trading Corporation of India Ltd.
Sources said Standard Chartered is optimistic of increasing its stake in stages to 100 per cent by 2010. The company expects the acquisition to close by October, subject to certain conditions, including regulatory approvals. “The entry into securities broking will enable Standard Chartered to broaden its product offering in wealth management and private banking within the country, and the NRI product portfolio in its footprint countries,’’ said the group.
Standard Chartered Bank’s proposal to acquire a 49 per cent stake in UTI securities for Rs 14.7 crore had been given the go-ahead by Finance Minister P Chidambaram and Foreign Investment Promotion Board (FIPB)on August 17, 2007.