Tuesday, November 1, 2011

MF Global Sify says trading normal in India operations (Reuters)

REUTERS ? MF Global Sify Securities India Pvt Securities, an Indian firm that is 70 percent-held by collapsed U.S. futures broker MF Global, is functioning normally, its head told a local television channel on Tuesday.

Vineet Bhatnagar, managing director, told CNBC-TV18 that he was not aware of any discussion to sell MF Global's stake to its partner Satyam Infoway, which holds the remaining 30 percent.

"I would only submit that under the shareholders agreement that is presently there between MF Global and Sify Securities, Sify of course has the flexibility to weigh all its options," he said.

MF Global, run by ex-Goldman Sachs chief executive Jon Corzine, filed for bankruptcy protection on Monday following bad bets on euro zone debt.

The brokerage's meltdown in less than a week made it the biggest U.S. casualty of Europe's debt crisis, and the seventh-largest bankruptcy by assets in U.S. history.

The London Metal Exchange said in a statement on Tuesday it had suspended MF Global from trading with immediate effect, following a similar move by the CME Group, which operates the Chicago Mercantile Exchange, Chicago Board of Trade and New York Mercantile Exchange.

Bhatnagar described MF Global's 70 percent stake in the Indian venture as a portfolio holding for the U.S. firm.

"If there is a situation where the receivership in the U.S. results in a process where this 70 percent in India asset comes for a change of hands, I would imagine this is a very well supervised process in the U.S.," Bhatnagar said.

"We are a pure agency broker in India, we don't have any outstanding proprietary positions and we also do not have asset under management," said Bhatnagar.

In India, MF Global is a trading and clearing member on the Bombay Stock Exchange, National Stock Exchange, and is also a depositary participant on the Multi Commodity Exchange and National Commodity and Derivatives Exchange.

The company has a capital base of $14.5 million, as per information on its website. MF Global Sify offers online and offline equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions.

(Reporting by Siddesh Mayenkar in MUMBAI; Editing by Subhadip Sircar)

Source: http://us.rd.yahoo.com/dailynews/rss/india/*http%3A//news.yahoo.com/s/nm/20111101/india_nm/india602382

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