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A report by The Economic Times said India Infoline Ltd would be breaking its brokerage business into units. The move to break the business was needed to be done to meet banking regulations.The newspaper report also said the Securities and Exchange Board of India (SEBI) had already approved India Infoline's demerger plan.
India Infoline Finance Ltd executive ED Mukesh Singh said, "In order to meet the banking regulation(s), India Infoline is demerging the broking(sic) business and which would be transferred to its subsidiary India Infoline Distribution Co Ltd. We have already got SEBI approval and are now moving ahead with further compliance to complete the demerger process."
India Infoline Distribution is an existing non-listed subsidiary company of India Infoline. The company operates by carrying out financial products distribution activity. According to Singh, India Infoline would become a listed non-operative holding company after the demerger process.
India Infoline Group operates as a brokerage firm dealing in institutional brokerage, consumer lending, retail brokerage, realty and wealth management and institutional lending. The group had planned to convert India Infoline Finance Ltd. into a bank.
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