E*Trade raises stake in Investsmart via arm

USequity broking firm E*Trade Financial Corporation, through its indirectly wholly-owned subsidiary E*Trade Mauritius Ltd, hiked its stake in domestic broking and financial services firm IL&FS Investsmart Ltd.

"Our partnership with Investsmart will be a true two-way global relationship that provides Indian investors with access to US market equities trading and further expands the market opportunities for E*Trade Financial global customer base," R. Jarrett Lilien, President and Chief Operating Officer, E*Trade Financial Corporation, said in a press release here.

The joint press release by E*Trade and IL&FS Investsmart, however, did not disclose the equity holdings by the E*Trade, after the hike or the financial terms of the transaction.

Market sources said E*Trade would own about 23 per cent stake in IL&FS Investsmart, as compared to 7.29 per cent stake it held since the inception of the company in 2004.

IL&FS Investsmart will appoint a member of E*Trade Financial's executive management team as CEO designate of Investsmart, subject to completion of necessary formalities of statutory requirements and obtaining necessary approvals from SEBI, the exchanges and the government of India.