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Securities
Trading Corporation of India Ltd. (STCI) was established by Reserve
Bank of India (RBI) in May 1994, jointly with
public sector banks and all-India financial institutions
with the main objective of fostering the development
of an active secondary market for Government
securities and bonds issued by Public sector
undertakings, FIs, Corporates etc. The Company
was incorporated with an authorised and paid
up capital of Rs. 500 crore of which RBI contributed
50.18 per cent. RBI later on divested its shares
in favour of other shareholders. Presently Bank
of India is the major shareholder with 29% followed
by State Bank of India and Associates 10.5%,
and IDFC 10%. The remaining portion is held by
Public Sector Banks and Financial Institutions.
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| STCI commenced business operations
in June 1994 and was one of the first Primary
Dealers. The Company is registered
as a Non-Banking Financial Company with Reserve
Bank of India and is classified as an Investment
Company. Government of India have notified STCI as an "Approved Financial Institution" for
the purpose of Sections 18 and 24 of the Banking
Regulations Act, 1949 and Section 42(1) of the
Reserve Bank of India Act, 1934.
STCI's core activities comprise
participation, underwriting, market making and
trading in Government Securities. Apart
from the above, the Company is an active participant
in the inter-bank call money markets and Repo market.
As underwriters of government securities, the Company
has large commitments to bid for Government securities
in primary auctions. |
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STCI,
after strongly establishing its footing in the
Government Securities Market has progressively
moved into other segments of the fixed income
securities markets. The Company has become one
of the dominant players in the Corporate Bond
Market. The Company has also moved into the debt
derivatives market by becoming an active market
maker in the Interest Rate Swaps. The Company
has recently started providing portfolio management
services, trading in the equities market on proprietary
account and distributing Mutual Fund products.
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STCI has embarked on a growth path involving
both the organic and inorganic routes. We have
recently acquired UTI Securities Ltd (a 100%
subsidiary of the erstwhile Unit Trust of India)
for Rs 265 Cr. This company is engaged in areas
of Merchant Banking, Lead Management and Book
running for IPOs, Debt and Equity broking,
PMS, Debt Origination, Syndication and Distribution
and Online Equity trading.
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STCI is also in the
process of hiving of its PD activities into a
separate subsidiary and exploring new avenues
of activities like Private Equity, Asset Management
etc. in the holding Parent Company. |
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