Financial services provider HSBC InvestDirect (India) today said its subsidiary IL&FS Investsmart Insurance Brokers Ltd will discontinue the insurance broking business.
The board of directors at their meeting held on January 5 have approved to discontinue the insurance broking business by IL&FS Investsmart Insurance Brokers Ltd (IIIBL), HSBC InvestDirect (India) said in a filing to the Bombay Stock Exchange.
The company would surrender insurance broker licence to the Insurance Regulatory and Development Authority (IRDA).
HSBC InvestDirect (previously known as IL&FS Investsmart Ltd), owns 45 per cent capital in IIIBL. "This is with a view to align the business with the long term strategy of HSBC InvestDirect," the company said.
HSBC InvestDirect (India) provides varied range of services through its subsidiaries to individual and corporate customers.
In 2008, the Hongkong and Shanghai Banking Corporation (HSBC) had acquired a 73.21 per cent stake in IL&FS Investsmart, a leading retail brokerage house in India.
Shares of HSBC InvestDirect (India) were trading at Rs 253 on the NSE, up 0.86 per cent from its previous close.
