Mumbai, Aug 13: Tata Capital Ltd has signed a Memorandum of Understanding with Mitsubishi UFJ Securities (MUS) to establish a basis of cooperation in a wide range of strategic business areas, inclouding cross border investment banking and global offering of Indian equities.
Tata Capital in a release here said that the MoU was in line with its strategy to reinforce its presence in the Japanese markets and augment the Indo-Japanese Financial corridor. The two financial companies would also work towards development of the local bond market.
Tata Capital Ltd, a wholly-owned subsidiary of the 80 billion dollar Tata Sons Limited, is registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Banking Financial Company undertaking fund and fee-based businesses in the financial sector.
Detailing the MoU, the release said Tata Capital and MUS would consider collaborating on possible cross-border investment banking transactions, encompassing activities such as mergers and acquisition advisory, structured finance solutions including financing through Japanese and other equity and debt capital markets for clients seeking to tap international markets. These transactions could either be inbound, that is Japanese entities seeking to establish an Indian foothold, or outbound, that is Indian entities seeking to invest in Japanese companies or technology for synergistic or business expansion considerations.
The two companies would also consider deploying their combined expertise towards providing a 'one-stop' securities shop for Japanese and other foreign retail and institutional clients seeking to invest in the Indian equities secondary market. The existing infrastructure and network available with Tata Capital and its subsidiaries will be leveraged towards this end. The parties would also explore other technology-related initiatives such as a mobile/online trading platform.
Thirdly, the MoU envisaged developing the Indian domestic corporate bond market and would also discuss possibilities for expanding debt investments from Japan and other countries.
Tata Capital Managing Director Praveen P Kadle commenting on the MoU said ''this is another step towards strengthening our Japanese ties and we are confident that it will benefit both the organizations and the markets and customers we serve. The exchange of ideas and best practices between Tata Capital and MUS will be critical as we go about consolidating our business operating models and service offerings to the benefit of our discerning customers.''