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Reliance Capital plans to nter investment banking biz

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 10:12 PM IST

Anil Ambani-promoted Reliance Capital is considering to venture into investment banking as soon as market condition gets better, though global players of the segment are suffering huge losses now.     

"This is a missing link in the our business. We will enter the space as the market starts to look up," Reliance Capital Chief Executive Officer Sam Ghosh said.     

The team would be put in place first, then the company will initiate the process of seeking regulatory approval.     

The process of putting in a good team would be the first priority as there is dearth of skilled people in the space, he said, adding, recruitment itself would take a few months.      

He, however, did not give the exact timeframe for entering into this highly competitive space.     

With this, Ghosh said, Reliance Capital would become a full-fledged financial services provider.     

When asked about the activity that the proposed venture would undertake, he said, "We can look at various things like advisory in merger and acquisitions, equity and debt, but we have not firmed up any plans yet on that."     

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Interestingly, as a fall out of the global economic crisis, many global i-bankers are suffering huge losses.

In a major development, US-based financial services provider Lehman Brothers today intended to file for bankruptcy.     

Earlier, another major i-banker Bear Stearns, which suffered huge losses, was bought by JP Morgan.     

Meanwhile, Reliance Capital is giving out stock options worth over Rs 130 crore to about 350 employees across five of its business verticals, a move to retain senior managerial staff.

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First Published: Sep 15 2008 | 5:29 PM IST

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