Post-UTI Securities buy, STCI targets mutual fund, bank

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Mumbai, Feb 3: Following the takeover of UTI Securities, Securities Trading Corporation of India (STCI) has charted out a few more acquisition plans. Shedding its NBFC image, STCI plans to acquire a bank in the future.

Further, it also plans to acquire the SCUTI, a primary dealer, jointly managed by Standard Chartered bank and UTI Securities and get it merged with its own PD arm after hiving off the same from its core business model.

The combined net worth of both the PDs is estimated to be Rs 50 crore.

STCI also plans to start an asset management company (AMC), for which it plans to set aside a corpus of Rs 50 crore. Commenting on the same, STCI's managing director, G Narayanan said, "We are very actively looking at setting up an AMC and we are meeting all the criteria laid down by Sebi to start an AMC."

Further, STCI also plans to roll out a private equity fund very soon in the future.

"This private equity fund would serve as a venture capital fund, wherein we would identify small firms having a good business model, primarily in the area of pharmaceutical sector and technology companies" said Mr Narayanan.

"We may even look at carrying out the private equity business through UTI Securities. Currently, we have enough resources and hence do not envisage to go public and get listed immediately. However, we may plan to get listed in another two to three years, after reasonable enhancement of our business," he said.