Anil Dhirubhai Ambani Group firm Reliance Money has set its eyes on giving competition to the two premier stock exchanges in the country, viz. Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Reliance Money in collaboration with Financial Technologies India Ltd (FTIL) plans to start its own stock exchange.
Reliance Money has the monetary backing of R-ADAG group; it is also a prominent player in commodity market after picking 10% stake in the National Multi Commodity Exchange (NMCE). The company wants to increase its holding to 26% in near future. Reliance Money’s spot exchange for agriculture commodities is also expected to early 2009. The FTIL group has interests in a currency futures exchange, commodity futures, power exchange and spot exchange for agricultural commodities and plans to set up an exchange for SMEs. It has also set up exchanges overseas.
There is tremendous scope for equity stock exchange in the country that has only 5% of its households investing in equities compared to the global average of around 50%. The equity derivative segment has the biggest scope, with the NSE enjoying a virtual monopoly in the segment with an average daily volume of around Rs 40,000 cr. The spot equity market average turnover doesn’t even match up to half of the NSE derivate average, with the BSE having a daily average volume of Rs 4,000 cr and the NSE having daily average volumes at Rs 10,000 crore in the spot segment.
Any aspirant in the stock exchange segment will however need approval from the Reserve Bank of India (RBI). For FTIL, the equity exchange would be an extension of MCX-SX, its currency trading exchange, which was launched under a subsidiary. Reliance Money will have to set up a new company. Another issue could be equity holding, SEBI has recently decided to allow a single shareholder to hold a maximum of 15% in stock exchanges, but has not notified this yet. The aspirant companies’ track record will also be key factor in getting regulatory approval. If approved, this will be the first stock exchange after 1994, when the NSE was set up
Even though both sources have not confirmed the development, both are eyeing the possibility of an exchange for small and medium-sized (SME) enterprises, an area which is beleaguered with several failed attempts. Earlier ventures such as the Indo Next under the BSE trading platform, Over the Counter Exchange of India (OTCEI) and Inter-Connected Stock Exchange of India had failed to take off.
Worldwide SME exchanges are flourishing. LSE's Alternative Investment Market (AIM) was established in 1995 to nourish young entrepreneurial British firms. AIM is home to over 1,500 firms of which close to 250 are listings of firms based outside Britain. Obviously, one of the attractions for overseas firms is the laidback regulatory regime.
Tuesday, December 30, 2008
Saturday, December 27, 2008
Reliance Money sets up shop in Malaysia
RELIANCE Money, the largest broking house in India, has entered Malaysia's financial services market through a business collaboration with Infinity Financial Solutions, a local major financial products and services distribution company.
Reliance Money director and chief executive officer Sudip Bandyopadhyay said the company will be launching its portfolio management services (PMS) and other services in Malaysia soon.
"Reliance Money's PMS in Malaysia would be offered at a threshold level of as low as US$50,000 (RM174,000)," he said in a statement made available to Business Times.
Bandyopadhyay said this is the first such initiative by an Indian broking and distribution company to offer a bouquet of financial products and services to non-resident Indians (NRIs) in Malaysia.
"This is our first move to reach out to the large base of NRIs in Malaysia with our unique, cost-effective and efficient bouquet of products and services.
"Our presence in Malaysia will complement efforts to have a larger role in this region," he said, adding that the move is part of Reliance Money's plans to expand its global footprint.
Reliance Money provides customers with access to equities, equity and commodities futures, mutual funds, life and general insurance products and off-shore investment.
The company already operates in Asia, Europe and Africa and plans to expand its operations in over 15 countries by next year.
"We aim to generate 50 per cent of our revenues from overseas markets by 2012 and capture a bigger share of the record US$195 billion invested in India last year by overseas funds," Bandyopadhyay said.
Infinity Financial Solutions director Ben Bennett, meanwhile, said the new venture with Reliance Money will help the company augment its services portfolio and provide the large NRI population in Malaysia with a platform to transact in Indian financial instruments.
"This partnership would also help us utilise their (Reliance Money) expertise by providing enhanced investment tools to a large section of population who have not been able to use these services earlier," he said.
Reliance Money is part of the Reliance Anil Dhirubhai Ambani Group. At present, it serves some three million customers and has a network of over 10,000 outlets and 20,000 touch points in more than 5,000 locations.
Reliance Money director and chief executive officer Sudip Bandyopadhyay said the company will be launching its portfolio management services (PMS) and other services in Malaysia soon.
"Reliance Money's PMS in Malaysia would be offered at a threshold level of as low as US$50,000 (RM174,000)," he said in a statement made available to Business Times.
Bandyopadhyay said this is the first such initiative by an Indian broking and distribution company to offer a bouquet of financial products and services to non-resident Indians (NRIs) in Malaysia.
"This is our first move to reach out to the large base of NRIs in Malaysia with our unique, cost-effective and efficient bouquet of products and services.
"Our presence in Malaysia will complement efforts to have a larger role in this region," he said, adding that the move is part of Reliance Money's plans to expand its global footprint.
Reliance Money provides customers with access to equities, equity and commodities futures, mutual funds, life and general insurance products and off-shore investment.
The company already operates in Asia, Europe and Africa and plans to expand its operations in over 15 countries by next year.
"We aim to generate 50 per cent of our revenues from overseas markets by 2012 and capture a bigger share of the record US$195 billion invested in India last year by overseas funds," Bandyopadhyay said.
Infinity Financial Solutions director Ben Bennett, meanwhile, said the new venture with Reliance Money will help the company augment its services portfolio and provide the large NRI population in Malaysia with a platform to transact in Indian financial instruments.
"This partnership would also help us utilise their (Reliance Money) expertise by providing enhanced investment tools to a large section of population who have not been able to use these services earlier," he said.
Reliance Money is part of the Reliance Anil Dhirubhai Ambani Group. At present, it serves some three million customers and has a network of over 10,000 outlets and 20,000 touch points in more than 5,000 locations.
Monday, December 22, 2008
Anil Ambani launches online shopping portal to sell financial products
To augment its existing distribution channels, ADAG has launched a new portal RelianceMoneyMall.Com to retail financial products under Reliance Money umbrella over the internet.
Apart from the Mutual Funds, insurance, IPO, research reports and Gold coins, the portal also sell gifts, home appliances and consumer durables. The list is expected to become more exhaustive over a period of time.
The initiative may prove to be successful as R-ADAG has lot of products under Reliance Capital banner and the portal may prove to be a low cost distribution model.
Anil Ambani launches online shopping portal to sell financial products - Digital Inspiration.
Apart from the Mutual Funds, insurance, IPO, research reports and Gold coins, the portal also sell gifts, home appliances and consumer durables. The list is expected to become more exhaustive over a period of time.
The initiative may prove to be successful as R-ADAG has lot of products under Reliance Capital banner and the portal may prove to be a low cost distribution model.
Anil Ambani launches online shopping portal to sell financial products - Digital Inspiration.
Reliance Money planning to rope in mandi bodies to hold stake in agriculture spot exchange
Reliance Money is planning to rope in apex bodies of mandis in various states as shareholders for the proposed agriculture spot exchange it has announced with National Multi-Commodity Exchange (NMCE).
“We have held discussions with Gujarat Niyantrit Bazaar Sangh, the apex body of more than 200 mandis in the state, and its counterpart in Tamil Nadu, and we may rope them in as shareholders,” Reliance Money CEO Sudip Bandyopadhyay said.
In August, Reliance Money and NMCE had announced the setting up of National Agriculture Produce Marketing Company of India (National APMC) that aims to provide the required infrastructure for electronic trading in agricultural products.
Bandyopadhyay said that a separate spot exchange for non-agricultural products would also be set up once National APMCL started functioning hopefully by June next year. The company had earlier indicated that National APMC would commence operations by December.
On shareholding details, the Reliance Money CEO said that those were being finalised.
While National APMC has approached more than a dozen states for permission to ensure that it is able to deliver the farm products traded electronically, so far it has received permission only from Gujarat and Rajasthan.
Analysts said that by tying up with state-level agencies for mandis, Reliance Money was also reducing chances of political opposition to electronic spot trading as these bodies were controlled by local politicians.
Commodities trading has been a politically sensitive issue and the government in the past has imposed ban on futures trading in commodities. The ban followed uproar by politicians, who said futures trading was speculative and blamed it for the increase in prices.
Presence in the commodity exchange business has emerged as a major focus area for Reliance Money, which is part of the Anil Dhirubhai Ambani Group (ADAG). It has sought permission to acquire 26 per cent stake in NMCE, the national commodity futures exchange, but has so far received the go ahead to buy 10 per cent. In addition, it had bought a 15 per cent stake in Hong Kong Mercantile Exchange to become the second largest shareholder in the commodity bourse. Hong Kong Mercantile Exchange plans to start trading in the first quarter of 2009 by offering dollar-denominated oil contract.
“We have held discussions with Gujarat Niyantrit Bazaar Sangh, the apex body of more than 200 mandis in the state, and its counterpart in Tamil Nadu, and we may rope them in as shareholders,” Reliance Money CEO Sudip Bandyopadhyay said.
In August, Reliance Money and NMCE had announced the setting up of National Agriculture Produce Marketing Company of India (National APMC) that aims to provide the required infrastructure for electronic trading in agricultural products.
Bandyopadhyay said that a separate spot exchange for non-agricultural products would also be set up once National APMCL started functioning hopefully by June next year. The company had earlier indicated that National APMC would commence operations by December.
On shareholding details, the Reliance Money CEO said that those were being finalised.
While National APMC has approached more than a dozen states for permission to ensure that it is able to deliver the farm products traded electronically, so far it has received permission only from Gujarat and Rajasthan.
Analysts said that by tying up with state-level agencies for mandis, Reliance Money was also reducing chances of political opposition to electronic spot trading as these bodies were controlled by local politicians.
Commodities trading has been a politically sensitive issue and the government in the past has imposed ban on futures trading in commodities. The ban followed uproar by politicians, who said futures trading was speculative and blamed it for the increase in prices.
Presence in the commodity exchange business has emerged as a major focus area for Reliance Money, which is part of the Anil Dhirubhai Ambani Group (ADAG). It has sought permission to acquire 26 per cent stake in NMCE, the national commodity futures exchange, but has so far received the go ahead to buy 10 per cent. In addition, it had bought a 15 per cent stake in Hong Kong Mercantile Exchange to become the second largest shareholder in the commodity bourse. Hong Kong Mercantile Exchange plans to start trading in the first quarter of 2009 by offering dollar-denominated oil contract.
Tuesday, December 16, 2008
RBI’s FCCB buyback policy a welcome move: Reliance Money
According to Reliance Money's report, the research firm believes that the RBI’s FCCB buyback policy is a welcome move but grossly inadequate.
Reliance Money's report:
Consequent to the recent RBI directive, FCCBs are now being allowed to be bought back by Indian Companies. It has now been decided to permit premature buyback of FCCBs. For the buyback of FCCBs out of rupee resources the RBI has fixed a minimum discount of 25% on the book value. The amount of the buyback is limited to USD 50 million of the redemption value per company wherein this window will be kept open till March 09. We believe RBI’s FCCB buyback policy is a welcome move but grossly inadequate.
Reliance Money's report:
Consequent to the recent RBI directive, FCCBs are now being allowed to be bought back by Indian Companies. It has now been decided to permit premature buyback of FCCBs. For the buyback of FCCBs out of rupee resources the RBI has fixed a minimum discount of 25% on the book value. The amount of the buyback is limited to USD 50 million of the redemption value per company wherein this window will be kept open till March 09. We believe RBI’s FCCB buyback policy is a welcome move but grossly inadequate.
Reliance Money debuts in Malaysia
Reliance Money, part of the Reliance Anil Dhirubhai Ambani Group, announced its debut in Malaysia, by joining hands with Infinity Financial Solutions, one of Malaysia's major financial products and services distribution company, as part of plans to expand its global footprint.
Monday, December 15, 2008
Reliance ADAG Eyes 50% In UK Currency Co
The deal will be routed through Wall Street Finance, a listed Indian firm that Reliance ADAG acquired recently.
There are still some buyers in the financial services sector. Anil Ambani led Reliance ADAG which has been striking international deals in the brokerage and commodities exchange business, is now looking at a bigger play on cross border money transfer activity. It is now close to acquiring 50% stake in a UK-based currency exchange and money transfer firm for an undisclosed amount. This will enable the Indian company to sell its financial products including mutual funds to the 1.4 million NRI population in the UK, says this report.
There are a number of large money transfer and currency exchange firms in the UK with Travelex (which was acquired by a consortium led by Apax Partners three years back). The target company is said to have more than 250 outlets. Some of the prospective names in the field who could be under the radar of Reliance ADAG include TTT Moneycorp and No1 Currency.
TTT Moneycorp is a retail, wholesale and commercial foreign exchange services firm in the UK owned by the Shlewet family trust and backed by the Royal Bank of Scotland while No1 Currency was formed in 1996 and is owned by its two founding partners David Hale and Mark McElney.
There are still some buyers in the financial services sector. Anil Ambani led Reliance ADAG which has been striking international deals in the brokerage and commodities exchange business, is now looking at a bigger play on cross border money transfer activity. It is now close to acquiring 50% stake in a UK-based currency exchange and money transfer firm for an undisclosed amount. This will enable the Indian company to sell its financial products including mutual funds to the 1.4 million NRI population in the UK, says this report.
There are a number of large money transfer and currency exchange firms in the UK with Travelex (which was acquired by a consortium led by Apax Partners three years back). The target company is said to have more than 250 outlets. Some of the prospective names in the field who could be under the radar of Reliance ADAG include TTT Moneycorp and No1 Currency.
TTT Moneycorp is a retail, wholesale and commercial foreign exchange services firm in the UK owned by the Shlewet family trust and backed by the Royal Bank of Scotland while No1 Currency was formed in 1996 and is owned by its two founding partners David Hale and Mark McElney.
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