Goldman Sachs is to expand in the fast growing Indian equities market by applying for licences to start a financial-services firm in the cou...

Goldman Sachs is to expand in the fast growing Indian equities market by applying for licences to start a financial-services firm in the country. The move will involve ending a 10-year securities alliance with Indian billionaire Uday Kotak. Goldman had already sold its 25 per cent stakes in two Indian joint ventures with Kotak Mahindra Bank for 3.33 billion rupees ($75 million). Brooks Entwistle has been appointed to head up Goldman's Indian business which will set up its own distribution team without a local partner. The Mumbai Stock Exchange's benchmark Sensitive Index is the best-performing stock benchmark in Asia over the past year, during which it has surged 61 per cent in US dollar terms. The number of shares traded on the market also rose by more than 50 per cent to reach record highs last year. Goldman said that whilst it had terminated the alliance, it had entered a one-year business cooperation agreement with Kotak Mahindra. “Upon the completion of the sale of our joint-venture interests, Kotak has agreed to provide consent for our regulatory filing process and we look forward to continuing our friendship,” said Mr Entwistle in an interview in the local press. The purchase of Goldman's stakes in Kotak Mahindra Capital and Kotak Securities is in line with its aspiration to be “a global financial institution in our own right,” according to the company. Kotak Mahindra has 600 retail outlets covering 203 cities and towns across India as well as a presence in the US, the UK, and Dubai.