With this acquisition, the Tata Groups stake in the AMC business will increase to 100 per cent.
In a joint release, the Tata Group and the TD Bank Financial group said: The Tata group has agreed in principle to increase its equity stake in Tata TD Asset Management Private Ltd to 100 per cent, subject to receipt of various statutory approvals.
However, TD Asset Management will continue to provide technical support in the fund management area in the MF business, the release added.
The total assets under management (AUM) of Tata TD Asset Management currently stand at Rs 2,300 crore as against Rs 700 crore in July 2002.
However, both the groups have decided to close the stock brokerage business Tata TD Securities.
However, the Tata group will retain a significant part of the mutual fund distribution business, the release added.
In the brokerage business, which is under the Tata TD Waterhouse brand, 50.1 per cent of the stake is held by the Tata group and the rest by the TD Bank Financial group.
Both the groups, in the press release, said: A thorough review of the equity broking business made it clear that the returns in this business would not meet shareholder goals.
Said David Livingston, executive vice-president, TD Bank Financial group: Our decision to exit these businesses in India is part of a global strategy to focus on retail brokerage and asset management activities in North America and the United Kingdom.
The Toronto-based TD Bank Financial group serves more than 13 million customers in three key businesses across the globe.
These include personal and commercial banking, including TD Canada Trust; wealth management, including the global operations of TD Waterhouse; and a leading wholesale bank, TD Securities.
The TD Bank Financial group has Canadian $322 billion in assets as of April 30, 2003.