Merrill to up stake in Indian arm for Rs 2,300 crore

Hemendra Kothari will continue as Chairman of DSP Merrill Lynch, and will take on added responsibility as a vice chairman of Merrill Lynch International supporting Merrill Lynch’s growth plans internationally and assisting Indian companies in their global endeavors. He will also become a member of the Merrill Lynch Asia Pacific Executive Management Committee.

Merrill Lynch’s relationship with DSP began in the 1980s and grew into a joint venture in 1995. The business will continue to operate under the DSP Merrill Lynch name.

Stan O’Neal, Chairman and CEO of Merrill Lynch said: “As a result of this change we will be able to accelerate our plans for growth in this robust market. I am also very pleased that Hemendra has agreed to take on these additional responsibilities.”

“Merrill Lynch has been an excellent partner for DSP over the last 20 years and I could not have been more fortunate to have them as a partner,” said Hemendra Kothari.

The deal is expected to close in the first half of 2006 and is subject to various regulatory approvals. As part of the transaction, DSPML Fund Managers, a wholly-owned asset management subsidiary of DSPML, will continue to be operated as a joint venture jointly owned by DSPML which will own 40 per cent, and Hemendra Kothari and related entities, who will own 60 per cent.