Brokers to have lesser role in ten yrs: IBM
Mumbai: A study titled `Financial Markets 2015-Study' conducted by IBM and leading business magazine the Economist has found that medium and small traders in the capital markets will come under severe pressure over the next ten years, as investors will demand higher returns at lesser cost and innovative products.

Bigger financial market firms that achieve efficiency through scale, aiming for other important scale benefits-such as greater scope, depth and breadth will be able to grab opportunities and combat margin pressures, it said.

About 400 executives, who manage 296 of the world's largest exchanges, broker/dealers, asset managers, custodians, hedge funds and regulatory bodies, covered by the survey believe that more profit will flow to investors in an increasingly transparent market place.

In a notable new twist, the individual investor was going to gain from the changes in the global capital markets in 2015.

The study says power will shift from the traders who have benefitted from merely facilitating transactions to the buyers and sellers who take positions on either end of the trade.

Excessive agency profits will evaporate as automation replaces traders and many regional broker/dealer will be acquired by universal banks in a push to achieve greater scale, the Study highlighted.

Value in 2015 will bifurcate into risk assumption and risk mitigation; and leading firms will capitalise on this apparent paradox.

Ultimately, the middleman has the most to lose in this new environment, the study added.
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Indiabulls sells 4.3 pc stake to foreign funds
Mumbai: Indiabulls has sold 4.3 pc stake to Sovereign Global, a global fund promoted by the Chandler brothers of New Zealand at Rs417 per share, valuing the company at about Rs6,000 crore.

Indiabulls will issue 72.5 lakh shares to Crown Capital, an investment arm of Sovereign Global, to raise about Rs302 crore. The price is marginally higher than Indiabulls' last Friday's closing price of Rs411.5 on the Bombay Stock Exchange.

Sovereign is the third foreign fund to increase its stake in Indiabulls in recent times. Fidelity and Merrill Lynch have upped their shareholding in the company to 10.35 pc and 10.3 pc respectively.

Sovereign Global has also invested in HDFC, HDFC Bank, ICICI Bank and UTI Bank. The combined value of these investments, which are below 5 pc in each company, is estimated to be about $1.5bn.
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Mahindra Gesco files for QIP
Mumbai: Mahindra Gesco has filed draft offer documents for a Qualified Institutional Placement (QIP) issue to raise resources.

The company plans to use the funds raised to finance its special economic zone (SEZ) development projects, real-estate projects and other infrastructure projects including waste and water management.

Mahindra Gesco is the fourth company to tap the QIP route, after Spentex Industries, Kalpatharu Power Transmissions and Ashapura Minechem. Kotak Mahindra Capital is the lead manager for Mahindra Gesco's QIP offer.
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