The acquisition, which would enable HSBC to grow its presence in the domestic brokerage space, will be performed through the group's Indian subsidiaries, including its security arm, HSBC Securities and Capital Markets (India), HSBC said in a statement to day.

"The investment is of strategic importance to HSBC as it gives us foothold in one of the largest retail broking markets in the world. The acquisition is consistent with our strategy of investing primarily in faster growing emerging markets," the HSBC Gro up Managing Director and Chief Executive Officer, Asia Pacific, Mr Sandy Flockhart, said.

HSBC would acquire the 43.85 per cent stake from E*Trade, Mauritius, one of the promoters of IL&FS, while an additional 29.36 per cent from IL&FS, the group said.

In addition, HSBC would also pay $19.4 million (around Rs 82.01 crore) to Infrastructure Leasing and Financial Services (IL&FS) as part of a three-year non-compete agreement, it said.

Source: Business Line