Japan’s leading global investment bank Daiwa Securities SMBC has started operations in India to market various investment banking products for prospective Indian investors and also as a vehicle for Indian companies to seek funding from Japan. Japanese investors have pumped in over USD 5 billion over the last two years through the Foreign Institutional Investors (FII) route and this is the first direct attempt made to access Indian investment and also tap prospective investment opportunities.
Observers say that this avenue to seek investment money is very good for Indian corporations which do not normally look at Japan for investment. This avenue will reduce cost of borrowing and also chances of funding to expand operations.
Daiwa says that its strategy is to open a corridor between the two nations and has USD 700 million set aside for investment in India. They want Indian companies to consider Japanese retail investors as another prospect in their future financing plans.