(27 June 2005 – India) HSBC is reportedly set to invest US$30 million to establish a wholly owned subsidiary in India in a bid to reengineer its capital markets and investment banking businesses in the country.According to the report, HSBC will transfer the 75 percent equity that is currently held by HSBC Investment Bank BV in HSBC Securities & Capital Markets India into a new subsidiary called HSBC NBFC.
The new subsidiary will buy out the 25 percent stake in HSBC Securities & Capital Markets India which is currently owned by shareholders, making the subsidiary wholly owned.
HSBC is hoping the newly structured subsidiary will become the hub for its business in India.