HSBC Shuts Brokerage Arm In India, Shedding 300 Jobs

N E WDELHI – Fiveyears after it entered the segment bypumping in over $290 million, Britishfinancial giant HSBC on Thursday said itwill shut its struggling retail brokerage anddepository business in India.Nearly 300 employees of the companystand to lose their jobs due to the decision,according to sources, though the UK firmsaid it remains committed to the market,where it employs over 30,000 at the grouplevel. Following the decision, the bank saidthere will no new client additions withimmediate effect, while existing clients willbe informed of a date of discontinuationand will continue to offer the services tillthe shutdown. “We are discontinuing itsretail broking and retail depository servicesbusiness here, operated under HSBCInvestDirect Securities,” HSBC India saidin a statement.”Impacted employees will be offered a fairand equitable severance pay in line withHSBC policy, and career transition serviceswill be extended through a professionalagency,” the statement added.HSBC India entered the retail brokeragebusiness in May 2008 – only months aheadof the financial crisis – by acquiring a73.2% stake in IL&FS Investsmart for$241.6 million. This was followed by anopen offer, which took up the stake toover 93%, taking total investment to $296million. It had subsequently delisted thecompany.