Geojit BNP Paribas Financial Services and JRG International Brokerage (Dubai-based associate of JRG Securities) said the idea is to attract potential non-resident Indian (NRI) investors, who look for investment opportunities like portfolio investment schemes and trading in Indian bourse.
According to the 'Times of Oman' report, the board of Geojit BNP Paribas last week approved investment in new joint venture companies to be set up in Oman and Kuwait for carrying out NRI business.
The total investment proposed in these two joint ventures is estimated in the region of Rs 5 crore. The report says the company is planning to start an investment business management centre (IBMC), which will offer both investment advice and training for NRI investors. "We are seeking approval from the regulating authorities for it," the official, who did not want to be named, told the newspaper.
"There has been tremendous interest for NRIs to invest in various portfolio investment schemes of brokerage firms. This is clearly felt after the financial crisis."
The official also noted that JRG Securities, whose stake was acquired by Bearings India, has 20 per cent stake in UAE-based JRG International Brokerage. Geojit BNP Paribas already has an arrangement with Global Financial for marketing Indian investment products exclusively to non-resident Indian investors.
Likewise, Geojit tied-up with Barjeel to form Barjeel Geogit Securities in the UAE, which is now branched out to the Saudi Arabian market. More than a dozen Indian brokerage companies and banks operate in the UAE under representative office or other licences that authorise them to market — rather than sell — Indian investment products to NRIs.