India Infoline, a domestic brokerage firm, is hoping to get regulatory clearance for launching an asset management company (AMC) and an offshore fund in Singapore by the end of this month.
"We have stage-one clearance from the Securities and Exchange Board of India (Sebi) to launch an AMC. We are also planning to launch one offshore fund in Singapore in this quarter," said R Venkataraman, executive director, India Infoline, on the sidelines of an investor conference on India equities — Outlook for 2009. The AMC would have a paid-up capital of Rs 10-15 crore, he added.
“The global economy has not stabilised and business confidence is at a low. The next financial year will see negative growth in corporate earnings in India. Outlook for FY11 and beyond is very uncertain. With such unfavorable and uncertain conditions, the risk appetite for equities is poor. Markets will continue to remain range bound for six-to-eight months," he said.
India Infoline had recorded a turnover of close to Rs 1,000 crore with about 60 per cent of the business coming from broking services in FY08.
“Q4 earnings are likely to be stable with growth in sectors like FMCG and telecom, besides rural-focused businesses. However, sectors like real estate are unlikley to perfrom well in the quarter. Banking stocks will soar on the back of government securities,” said Venkataraman.
