Photo: AFPMumbai: Nearly a year after French bank BNP Paribas SA agreed to acquire local brokerage firm Sharekhan Ltd, the Foreign Investment Promotion Board (FIPB) on Tuesday rejected the proposal. In one of the largest deals in the financial services space last year, BNP Paribas on 30 July agreed to acquire 100% share capital of Sharekhan (other than shares held by Human Value Developers Pvt. BNP Paribas yet to get FIPB notification on reason for rejection, says will reapply with changes that are neededIn one of the largest deals in the financial services sector last year, BNP Paribas on 30 July agreed to acquire 100% share capital of Sharekhan for nearly Rs2,200 crore. Currently, under the foreign direct investment (FDI) policy, a foreign investor can acquire up to 100% in a stockbroking firm under the automatic route. The purchase of Sharekhan was aimed to reinforce BNP Paribas’s retail broking operations in a country where it offers corporate and retail banking, investment banking and wealth management.

Source: Mint June 14, 2016 20:37 UTC