Securities Trading Corporation of India Limited (STCI) was set up as a subsidiary of Reserve Bank of India in May 1994 with the objective of fostering an active secondary market in Government of India Securities and Public Sector bonds. The Company had a subscribed and paid up capital of Rs 500 crores with RBI owning the majority stake to the tune of 50.18%. In 1996, STCI was authorized by RBI as one of the first Primary Dealers in India .
As a Primary Dealer, the Company undertook trading in GOI securities, Public Sector bonds, Non-SLR instruments and money market instruments. The Company also carried out proprietary equity trading. Other lines of activities included trading in Interest Rate Swaps- both for hedging and market making.
In 1997, RBI divested part of its holding and the share holding came down from 50.18% to 14.41% of the total paid up capital. Bank of India became the largest shareholder of the Company. In 2002, RBI sold its remaining shareholding in the Company to the existing shareholders. Bank of India continued to be the largest shareholder.
In April 2006, STCI took over UTI Securities Limited from Specified Undertaking of Unit Trust of India (SUUTI). Since Primary Dealers were not allowed to have step down subsidiaries, STCI hived off Primary Dealership as a separate 100% subsidiary by the name STCI Primary Dealer Limited (STCI-PD). The newly formed Company started functioning from June 25, 2007 .
STCI, in order to have a strategic partner, sold 49% of its stake in UTI Securities Limited to Standard Chartered Bank ( Mauritius ) Limited in January 2008. As Banks are not allowed to trade in Commodities, STCI took 100% stake in STCI Commodities from UTI Securities Limited thereby making it a fully owned subsidiary. Consequent upon the partial sale of stake to Standard Chartered Bank ( Mauritius ) Limited, UTI Securities is renamed as Standard Chartered-STCI Capital Markets Limited.
After hiving off its PD business, STCI continues to be a registered Systemically Important-Non Deposit taking Non Banking Financial Company (NBFC-ND-SI) with the focus on investment and loan activities. Apart from this, the Company runs a proprietary book in Equity, Fixed Income Securities and Commodities Futures.
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