South Korea’s top securities firm Mirae Asset Daewoo Co. has decided to set up a brokerage business in India in hopes of maximizing synergy effect with its Indian asset management business that has successfully drawn local investors since its inception.
According to sources in the investment bank sector, the company on Thursday appointed Ryu Han-suk, a manager from its Indonesian operation as the head of the team that will lead the process of establishing a local brokerage entity in India.
Mirae Asset Daewoo reportedly considered mergers and acquisitions of local securities firms in India, but later decided to establish its own operation, according to sources.
The company has not come up with a detailed plan including initial investment in the entity and the number of staff. But the industry observers expect the Indian operation would start business focused on trading and investment banking (IB).
“The company aims to establish the new Indian branch this year to start the business earlier next year after completing the licensing procedure,” said an unnamed official from Mirae Asset Daewoo. The official added the company plans to grow the Indian operation as a full-service brokerage in India by creating synergy with Mirae Asset Global Investments Co. that has successfully attracted local investors with products that are specifically tailored to Indian clients since it first entered into India in 2007.
In 2016, mutual funds that the Indian operation of Mirae Asset Global Investments managed reached about 1 trillion won ($873 million) and surged to about 2 trillion won this year.
Following the establishment of the new brokerage business in India, Mirae Asset Daewoo would have 14 overseas operations including 11 local entities across 10 countries.
By Shin Heon-cheol
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