Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Thursday, November 30, 2006

Indian company to open brokerage house in UAE

India's Reliance Capital Asset Management (RCAM) is seeking to establish a brokerage house branch in the UAE pending approval, according to a top executive.

"We are planning to launch our brokerage services branch in the UAE, and we are awaiting approval from the concerned authorities. We will also be seeking a presence at the Dubai International Financial Centre (DIFC) at a later stage, following the Industrial Credit and Investment Corporation of India (ICICI)," K. Rajagopal, RCAM's chief investment officer, told Gulf News on Wednesday.

The company is expecting to open the branch within two weeks as long as the approval is granted.

Yesterday, subscriptions to RCAM's new closed-end fund closed in the UAE, with the company expecting subscriptions from India and overseas of $300 million.

Rajagopal, who previously headed the treasury of the State Bank of India, is heading a mission to Kuwait, Bahrain, Oman and the UAE to market a new open-ended long-term fund. He carried out two presentations in Dubai and Abu Dhabi for the purpose.

"The UAE's Non-Resident Indian (NRI) community comes at the top Middle East based investor in our funds, and we are expecting to collect $75 million to $100 million from the region, as we already visited Kuwait, Bahrain and Oman," Rajagopal added.

Recently, Lipper, a Reuters company, classified Reliance Growth as the best performing among the five to ten years funds, with an annualised return of 71.39 per cent in the last five years.

"Following the success of our biggest fund in March, where more than $120 million was collected from the Middle East, we expect similar success to this fund as well, as there are substantial amounts of money seeking investment," said Love Yadav, RCAM's regional head for the GCC, explaining that the new fund is targeting medium and small capital.

In his presentation to the NRI community, Rajagopal illustrated the robust econ-omic performance of India, highlighting that to date, the country has received more than $4.4 billion in Foreign Direct Investment (FDI). This represents twice the figure that was invested in 2005.

"The financial institutional investments (FII) have reached $8 billion this year, while acquisitions by Indian businesses overseas total $10 billion so far, as the outflows of capital from India are witnessing remarkable growth," he said.

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