Societe Generale broking arm to set up shop in India
Fimat, the broking subsidiary of French banking major Societe Generale Group, is entering India, with an investment of $50 million for the first two years.
By Vivek Sinha, TNN |
NEW DELHI: Fimat, the broking subsidiary of French banking major Societe Generale Group, is entering India, with an investment of $50 million for the first two years. Fimat, one of the world’s largest brokerages has merged with Calyon — the futures and options brokerage unit of French bank Credit Agricole — early this week, would operate through its wholly-owned unit and is expected to be a strong player in the derivatives market.
According to sources, Fimat would initially bring in $7.5 million as its investment in the Indian arm and would thereafter pump in $42.5 million within two years, to comply with minimum capitalisation norms. Fimat is yet to register itself as a stock broker in India, but is likely to apply to the market regulator and the two national stock exchanges, BSE and NSE, soon. While Fimat Securities India has already been formed, it is yet to become operational and Fimat is now in the process of acquiring the firm from its resident shareholders.
Societe Generale, the parent company of Fimat holds 50% stake in Newedge — the new JV which is a result of the merger of Fimat with Calyon Financial — already has a presence in the broking business in India.
SG Securities Broking, an affiliate of Societe Generale, has a joint venture with Romil Finance & Investments in the stock broking business. Societe Generale holds 75% equity stake while the remaining 25% in the joint venture company SG Asia Holdings is held by Romil. However, Romil has given a no objection certificate for Societe Generale or Fimat to get into the stock broking business, through separate ventures.
With the global merger of Calyon and Fimat, the Indian arm would be christened Newedge Broker India.
According to sources, Fimat would initially bring in $7.5 million as its investment in the Indian arm and would thereafter pump in $42.5 million within two years, to comply with minimum capitalisation norms. Fimat is yet to register itself as a stock broker in India, but is likely to apply to the market regulator and the two national stock exchanges, BSE and NSE, soon. While Fimat Securities India has already been formed, it is yet to become operational and Fimat is now in the process of acquiring the firm from its resident shareholders.
Societe Generale, the parent company of Fimat holds 50% stake in Newedge — the new JV which is a result of the merger of Fimat with Calyon Financial — already has a presence in the broking business in India.
SG Securities Broking, an affiliate of Societe Generale, has a joint venture with Romil Finance & Investments in the stock broking business. Societe Generale holds 75% equity stake while the remaining 25% in the joint venture company SG Asia Holdings is held by Romil. However, Romil has given a no objection certificate for Societe Generale or Fimat to get into the stock broking business, through separate ventures.
With the global merger of Calyon and Fimat, the Indian arm would be christened Newedge Broker India.
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