Glanced at an article in today’s Economic Times where the Macquarie Group has disclosed that it had invested US $ 200 million in Indian operations.It is Increasing Headcount and is already in the top five Institutional Brokerage Houses in India
Could not help wondering if such Investments could be viewed as Monies being reinvested from part of Huge Profits (in all probability totally tax free) in Equity Investments in our Secondary Markets in India on Mumbai Stock Exchanges made by Macquarie as a Foreign Instituitional Investor (FII) registered with SEBI
Have a look at the four FII registrations of Macquarie with SEBI as of date
|
Macquarie Group Registrations as FIIs with SEBI in India till date |
|||||
|
Sr No |
Entity |
Place |
Date of Registration |
Sensex Close on Day of Registration |
Sensex Surge from Date of Reg |
|
1 |
Macquarie Bank Ltd |
NSW,Australia |
Jan 20,2005 |
6183 |
140 % |
|
2 |
Macquarie Investment Management Ltd |
NSW,Australia |
Apr 12,2006 |
11356 |
31 % |
|
3 |
Macquarie IMM Investment Co Ltd |
Seoul,South Korea |
Feb 14,2007 |
14010 |
6 % |
|
4 |
Macquarie Capital Investment Management LLC |
New York,USA |
Mar 13,2008 |
15357 |
(3 %) |
Sensex is 14852 at 2 pm now on Thursday,August 14,2008
Macquarie entered India in 2005 as a FII and has registered a seperate FII every single Year since then
Clearly Macquarie should have had a great run as a FII in 2005 rolling into 2006 and 2007 too…If FIIs brought in @ US 35 $ Billion in 2005-2007 Period as an Active and Aggressive Investor Macquarie too would have had a sound share of this Quantum and it’s Gains (Probably Tax Free) from Investments in Indian Equities would have easily crossed half a billion dollars …possibly over a Billion
So in a sense it’s made Huge Tax Free Gains in India as an Equity Investor and is re-routing back only a small part of such Gains into Indian Operations as a Broker,Wealth Manager and a Non Banking Finance Company…all within a space of three to four years
Can you look at it this way ?…India is welcoming it’s Own Money in as Foreign Direct Investment (FDI) !
Draw a parallel…Indian Promoters of Companies declare Huge Tax Exempt (In their Hands) Dividends and re-route the same back into the Company as Preferential Equity allotment to Promoters at Low Price and increase their stake too in the process
Kya Baat Hai !