Stanchart acquires 49-per cent stake in UTI Securities

23 August 2007

Mumbai: Global banking major Standard Chartered Plc has acquired a 49-per cent stake in UTI Securities Ltd for around Rs147 crore ($36 million) in cash.

Standard Chartered has entered into a strategic partnership with the Securities Trading Corporation of India (STCI) for acquiring the stake, the Asia-focused bank said in a release.

STCI owns 100 per cent of UTI Securities after acquiring it in 2006 from the administrator of the specified undertaking of the Unit Trust of India.

Under the agreement, Standard Chartered has the option to raise its stake in stages to 100 per cent by 2010, subject to necessary regulatory approvals, the release said.

"We welcome Standard Chartered as a strategic investor in UTI Securities. We believe that Standard Chartered with long track-record in India, a large client base and extensive overseas presence will add significant value to UTI Securities," said G Narayanan, managing director of STCI.