Karvy to float JV with Aussie firm

Karvy Consultants, the country's leading share registry services provider, is floating a 50:50 joint venture with Computershare Limited of Australia, for building a securities-registry company, sources familiar with the development said on Wednesday.

Karvy will be transferring its securities registry division to the joint venture, which is to be called Karvy Computershare Private Ltd, sources told Business Standard.

However, there would be no change in the management of Karvy's investment banking, stockbroking, financial products distribution and depository participant business, which will remain with the company's promoters, the sources said.

According to sources, the cost of the 50 per cent interest in the joint venture with Karvy would be Australian $10 million. "The tie-up will significantly enhance Karvy's expertise in securities registry, because Computershare has more experience in the segment as it operates in mature markets like the UK, Australia and the US," sources said.

The rationale for Karvy to float the joint venture was to tap into the cross-border transactions market, they added.

The sources said the two companies were awaiting approval from regulatory authorities for the project to take off.