Mumbai, February 23: Is the DSJ group selling off its broking business? Even though no official word on the same was made available by the company, it is learnt that Asia Corp Securities, the broking arm of the DSJ group, has already started diverting its business to another stockbroker.The broking arm, which is an otherwise sound and profit-making firm of the group, is learnt to have asked its clients to approach another broking outfit belonging to Yogesh Gupta, a member of the Bombay Stock Exchange (BSE).
However, when contacted, Gupta said that he has no plans to purchase the outfit. He did admit, though, that part of the business of Asia Corp Securities is being diverted to his outfit and that some clients of the former have approached him for carrying out their business.
Asia Corp Securities managing director Rajesh Padode could not be reached for comments on the latest move. According to sources, the DSJ group is trying to relocate its businesses in the garden city of Bangalore, and getting outof the broking business directly or indirectly could be a part of this move.
It is learnt that the National Stock Exchange (NSE) membership would be surrendered while a buyer is being found for BSE. Sources added that the Asia Corp management recently conveyed to its senior officials its decision to put financial services on a low priority and this is the reason for it wanting to exit from the business. This could not be confirmed with the group.
Sources, however, added that as many as 17 persons from the back office as well the debt segment have been shown the door in the past week, indicating that the firm is drastically pruning its staff strength. This is also aimed at smoothening out the process of transfer of staff to the new owner of the outfit. Asia Corp had bought its BSE membership card at a whopping Rs 2.75 crore in 1995. The value of a BSE card these days is less than Rs 1 crore.
The firm had built up a strong retail-cum-institutional client network. The rummoured buyer, Gupta, is howeveronly a retail broker.
The DSJ group has not had things going its way. Its non-banking finance company has had problems with the regulator over accepting deposits.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
