Kochi: The Kochi-based retail broking firm, Geojit Securities Ltd, is setting up an overseas venture jointly with a United Arab Emirates (UAE) partner to provide broking and depository services to NRIs in the Gulf countries.
The company has signed an MoU with the UAE-based brokerage house, Barjeel Shares and Bonds LLC, to set up a new company -- Brajeel Geojit Securities LLC -- with an initial capital of $1 million. The UAE partner will hold 80 per cent equity while Geojit will have 20 per cent. The new company will be based in Dubai.
The MoU was signed between Geojit Securities managing director C J George and Barjeel Shares and Bonds chairman Sheikh Sultan Saud Al Qasimi Barjeel Shares. BSB is part of the Sharjah-based AL Saud Group.
As per the MoU, the AL Saud Group will facilitate the international brokerage license for Indian capital market operations and Geojit will provide the professional and technical expertise, including the software support.
Barjeel Geojit proposes to set up offices in Abu Dhabi, Sharjah, Muscat, Bahrain, Doha, Kuwait and Riyadh to cover all the GCC countries.
Addressing a press conference in Mumbai, Geojit Securities Ltd chairman A P Kurian said: NRIs from the Gulf region have been investing in the Indian capital market for more than 25 years, but have not consistently capitalised on the opportunities that arise from appreciation of their stocks. The absence of a brokerage house in GCC was the main obstacle for the NRIs based in GCC countries.
This vacuum will be filled with the start-up of the first brokerage house for Indian capital market dealings. We expect an outflow of $500 million investment in a years time,' he said.
Brajeel Shares and Bonds chairman Sheikh Sultan Saud Al Qasimi will be the chairman of the new venture and C J George and K V Shamsudheen will be on the board of directors. Shamsudheen will also head the GCC operations in this joint venture.