HSBC has sought approval from its London head office to venture into insurance broking, and has identified an Indian partner who will take the majority stake in its brokerage firm.
Similarly, DSP Merrill Lynch (DSPML) is also keen to become an insurance broker as it wishes to offer its private clients a complete range of wealth management services. It, however, has to get round the issue of Merrill Lynch holding 40 per cent share in the Indian outfit, (DSPML).
While, some leading foreign insurance brokers have chosen to stay on the sidelines as the broker regulations cap foreign stake at 26 per cent, HSBC has decided to tie up with an Indian partner.
HSBC Insurance Services (India) Pvt Ltd chief executive officer Peter J Valentine told Business Standard: