HSBC Holdings would be exiting its India-based retail broking and retail depository services unit in India. In an emailed statement to Bloomberg, Europe's biggest lender said no new broking accounts would be opened in its InvestDirect Securities (India) Ltd unit. The London-based lender also said it would also notify the unit's clients about the actual closing date of the business.
In a phone interview, Hong Kong-based spokesman of HSBC Gareth Hewett said about the exit, "The closing down of the retail brokerage operations will help HSBC to free up capital which will be deployed in other growing businesses. The group's strategy is to invest in faster growing businesses including wealth management and trade financing."
HSBC would still continue to provide retail banking, commercial banking, investment banking, wealth management, capital markets, asset management, institutional broking and insurance services in the Asian country.
In 2008, HSBC gained control of the brokerage firm IL&FS Investsmart Ltd in a USD 296 million deal. The lender then renamed the firm HSBC InvestDirect India Ltd.
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