Standard Chartered Bank has announced several new appointments for its equities markets business, which coincide with it taking full control of its Indian brokerage subsidiary.
The hires range across its offices in Singapore, Hong Kong, London and Mumbai, and are focused on developing the bank’s equities platforms in South and Southeast Asia. Meanwhile, the UK-headquartered bank has bought the minority stake in Standard Chartered-STCI Capital Markets Limited, which was previously held by its Indian partner.
“Standard Chartered recognises the opportunities in equities in Asia [and is] committed to deliver in the build out of our equities capabilities across our core markets,” said Craig McGee, head of Southeast Asian equities in a statement yesterday.
Venkatesh (“Venky”) Sethuraman joins from Citi as managing director for Southeast Asian equities sales. He is tasked with expanding Standard Chartered’s cash equities franchise with regional institutional clients, and with growing its equities sales business in India and Southeast Asia. He took up his Singapore-based position yesterday, and reports to McGee.
Sethuraman has more than 15 years of experience in equities sales and sales trading in Asia. He was most recently managing director and head of equities for Asean at Citi in Singapore, where he managed teams across the region and was responsible for the product and development franchise in new markets such as Indonesia. Before that, he was head of sales and sales trading at Citi in Mumbai. He has also held senior equities sales roles at several domestic securities firms in India.
“[Sethuraman] brings with him a wealth of experience in equities sales and trading in India and Asean. I am confident that he will add to the growing strength of our equities sales team in Asia,” said McGee.
In a separate statement yesterday, Standard Chartered said that it has increased its holding in Standard Chartered-STCI Capital Markets to 100% through the purchase of the 25.1% stake owned by Securities Trading Corporation of India (STCI). It has received all the necessary regulatory approvals for the acquisition, it added.
Standard Chartered plans to inject an additional $45 million of capital into the brokerage by January 2012, according to Neeraj Swaroop, Standard Chartered’s regional chief executive officer for India and South Asia. Of that, $20 million has already been added, he said. The brokerage will be rebranded in the coming months to reflect the new ownership.
Standard Chartered entered into a strategic partnership with STCI in August 2007 when it bought 49% of UTI Securities, which was then renamed Standard Chartered-STCI Capital Markets. As part of the initial agreement, Standard Chartered exercised an option to raise its stake to 74.9% in December 2008.
The firm currently offers retail and institutional broking, wealth management products and investment banking services across 112 locations in India. To expand the business and to ramp up capabilities in institutional equity research, sales and equity capital markets, it has made several senior level appointments in recent months.
These include four executives who were hired from Anand Rathi Financial Services in June, and who have now taken up their posts. They had all joined Anand Rathi from Citi in 2008.
Ratnesh Kumar has been appointed managing director and CEO of Standard Chartered-STCI Capital Markets, overseeing all its businesses. He has nearly two decades of capital markets experience at Citi, CLSA and, most recently, Anand Rathi, where he was CEO for institutional equities.
Rajesh Mayani and Dhiraj Agarwal have come onboard in order to strengthen the firm’s Mumbai-based institutional sales team. Mayani has 16 years' experience in Indian equities, and also joins from Anand Rathi where he was an executive director. Agarwal has worked in the industry for 17 years, most recently as a director for institutional equities at Anand Rathi.
The India sales effort has been further strengthened by additions to Standard Chartered’s sales desks in Hong Kong, Singapore, London and New York. Narayan Mulchandani and Sam Tully have joined the Hong Kong and London desks, respectively, as senior India sales specialists. Mulchandani was head of sales at Anand Rathi, and also has Citi, WI Carr and Jardine Fleming on his CV. Tully arrived from Seymore Pierce in London where he was a director for corporate broking. He has also headed the India desk at Cazenove in London and the sales desk at Jardine Fleming’s Mumbai office.
Finally, highly rated analyst Rahul Singh has joined from Citi, where he was deputy head of research.
“[The hires are] in line with Standard Chartered's focus to broaden its equities and equities capital market platform not just in India, but also across Southeast Asia, Korea and Greater China, amid rising demand from its clients,” said a spokesperson. “Standard Chartered sees strong opportunities for success and continues to broaden its equities platform,” he added.
Standard Chartered is listed on the London, Hong Kong and Mumbai stock exchanges, and earns around 90% of its income and profits in the emerging markets in Asia, Africa and the Middle East.
