IDBI Ltd launches IDBI Gilts as PD subsidiary
IDBI Ltd on Thursday announced the launch of IDBI Gilts Ltd as its wholly-owned primary dealer (PD) subsidiary.
By PTI |
MUMBAI: IDBI Ltd on Thursday announced the launch of IDBI Gilts Ltd as its wholly-owned primary dealer (PD) subsidiary.
"We see IDBI spanning all segments of the financial services space, be it banking, insurance, PD, asset management or private equity. I'm sure the new company will reach the pre-eminent position in the government securities market," IDBI Chairman and Managing Director V P Shetty said after inaugurating the IDBI Gilts office here.
IDBI was a leading primary dealer in the past and with the launch of the subsidiary today, "we will return to the top position and it will be the most profitable venture," Shetty added.
The new company has been set-up with net owned funds of Rs 100 crore in order to enable it to undertake permitted core as well as non-core activities.
The core activities would involve dealing in G-Secs and other fixed income securities, while non-core activities include investment, trading in equity, units of equity oriented mutual funds, advisory services and merchant banking services.
IDBI Gilts CEO N S Venkatesh said, "Besides focussing on bond trading, underwriting in auctions of primary issuance of government dated securities and treasury bills, IDBI Gilts also has plans to be a major player in the interest rate and credit derivatives market."
After hiving off IDBI Gilts, IDBI Capital would now be an aggressive player in equity broking and merchant banking activities. It sees huge opportunity in wholesale and retail broking business, Shetty said.
"We see IDBI spanning all segments of the financial services space, be it banking, insurance, PD, asset management or private equity. I'm sure the new company will reach the pre-eminent position in the government securities market," IDBI Chairman and Managing Director V P Shetty said after inaugurating the IDBI Gilts office here.
IDBI was a leading primary dealer in the past and with the launch of the subsidiary today, "we will return to the top position and it will be the most profitable venture," Shetty added.
The new company has been set-up with net owned funds of Rs 100 crore in order to enable it to undertake permitted core as well as non-core activities.
The core activities would involve dealing in G-Secs and other fixed income securities, while non-core activities include investment, trading in equity, units of equity oriented mutual funds, advisory services and merchant banking services.
IDBI Gilts CEO N S Venkatesh said, "Besides focussing on bond trading, underwriting in auctions of primary issuance of government dated securities and treasury bills, IDBI Gilts also has plans to be a major player in the interest rate and credit derivatives market."
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After hiving off IDBI Gilts, IDBI Capital would now be an aggressive player in equity broking and merchant banking activities. It sees huge opportunity in wholesale and retail broking business, Shetty said.
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