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Paramvir Singh/Reuters
Mumbai/New York, Oct 26: TD Waterhouse Group Inc on Tuesday became the first major US discount broker to step on to Indian turf by forming a joint venture with the leading conglomerate the Tata group to offer discount trade execution, mutual funds and, eventually, online trading.
The new entity, which will offer online services subject to Indian regulatory approval, is expected to be named Tata Finance/TD Waterhouse Ltd. The New York-based TD Waterhouse, a unit of Toronto-Dominion Bank, is the third-largest discount broking house in the world currently managing funds in excess of $122 billion.
"TD Waterhouse will pick up 49 per cent stake in Tata Finance Ltd's (TFL's) wholly-owned subsidiary Tata Finance Securities Ltd (TFSL). TFSL is a member of the Bombay Stock Exchange as well as the National Stock Exchange, and is also a primary dealer.
The deal is worth Rs 67 crore. Part of these funds will flow into TFSL, while the balance will be received by TFL in return of the shares sold to TD Waterhouse," TFL managing director DS Pendse told The Financial Express.
"With this tie-up, TFL will be able to leverage its retail reach of 75 electronically connected branches in the country, its brand name and the eight lakh strong client base. TD Waterhouse will also bring into the venture its technology and expertise in the area of derivative trading, margin trading and Internet broking services," Pendse said.
Another major advantage to TFSL will be the large referral client base of high net worth individuals, including non-resident Indians, which TD Waterhouse will bring into this venture.
"This investment reaffirms our strategy to leverage TD Waterhouse's leading position in North America to become a major player around the globe," TD Waterhouse chief executive Steve McDonald said in a statement. TD Waterhouse already has presence in Canada, Australia, Hong Kong, and Britain. "With over 25 million investors and an Internet revolution under way, we see India as an exciting growth market with tremendous business opportunities for us," TD Waterhouse's executive vice-president, European operations, Bharat Masrani, said in the statement.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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