IIFL suspends its brokerage operations in Singapore
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Diversified financial services firm and leading brokerage house India Infoline(IIFL) Group on Friday said it is "suspending" its brokerage operations in Singapore amid low trading volume there and as part of the ongoing restructuring programme.
"We have sought a temporary suspension of our trading activities on the Singapore Exchange," IIFL spokeswoman Poonam Saraogi said.
"This is part of the overall revamping programme of our operations in Singapore which will see suspension of brokerage business. However, we will continue with our China and Singapore research and other advisory and fund management services, from the city state."
When asked for specific reason for the closure, she said it was due to lower-than-expected equities trading volumes in Singapore. About possibility of jobs loss, she said that some people would lose jobs but did not put an exact number to it.
"I am not sure of the number of people losing their jobs. But, yes it will involve some jobs as we are downscaling our operations. I am also not sure about the exact number of people employed in our Singapore office," she said.
The Carlyle Group has a stake in the Mumbai-based IIFL. The Washington-based buyout firm's private equity unit in Asia had accumulated a 9 percent stake in the brokerage last October for an undisclosed sum.
The IIFL action comes amidst moves by banks and brokerages in Asia Pacific joining their global rivals that have cut over 2 lakh jobs since 2011 as the European debt crisis triggered a slowdown in the region.
The Japanese Daiwa Securities, South Korean Samsung Securities and Australian Macquarie Group have reportedly slashed their employee counts this year. The move comes even as IIFL, which got trading licence in mid-2010 there, is focusing on its investment banking business in the country.
Earlier in the day, the group said as part of its increased focus on investment banking, it has roped in Nipun Goel as president of its investment bank and said it will double its employee count at the i-banking division.
IIFL shares rose 10.75 percent to Rs 72.65 today on the BSE, whose main gauge Sensex rose 357.72 points or 2.09 percent today.