Goldman Sachs gets RBI nod for debt market operation
15 Apr 2011
Goldman Sachs has received Reserve Bank permission for undertaking primary dealership business in the market for government securities in the country, from 18 April 2011.
"The Reserve Bank of India has authorised Goldman Sachs (India) Capital Markets Private Limited to undertake primary dealer business with effect from Monday, 18 April 2011," the central bank said in a release.
The licence will allow the US investment bank to underwrite government bonds in the world's second-fastest growing major economy, where the finance ministry is expected to raise an estimated Rs417,000 crore ($94 billion) in debt in the year ending 31 March 2012.
The licence will also enable it to trade in currencies in India on a par with rivals, including Morgan Stanley and Citigroup Inc.
RBI grants permission to banks, brokers, dealers or other financial institutions to act as primary dealers in government securities.
Goldman Sachs, which operates out of offices in Bangalore and Mumbai, is into investment banking, investment research, operations and technology practices in India.