The two companies will develop a discount brokerage and other online financial services in India through the new venture. TD Waterhouse (TWE) will control 49 percent of the new company, while Tata Finance Securities Ltd. will hold the majority share, in concordance with the country’s investment laws.
Financial terms of the deal were not disclosed.
“With over 25 million investors and an Internet revolution underway, we see India as an exciting growth market with tremendous business opportunities for us,” said Bharat Masrani, TD Waterhouse’s executive vice president of European.
“In short order, we expect that with the Tatas, we will become
the premiere brokerage company in India offering trade execution, mutual
funds, and, subject to local regulatory approval, online services.”
Tata Finance Securities is a primary dealer licensed by the Reserve Bank of India and is a member of the National and Bombay stock exchanges.
The Tata business group represents 5 percent of India’s total market capitalization, according to the company. The $7.9 billion company is involved in the financial services, information technology, automobile, steel, cement and hospitality sectors in the country.
TD Waterhouse serves financial customers in the US, Canada, Australia, Hong Kong, and the UK.