STCI Finance

STCI Finance Ltd. (formerly known as Securities Trading Corporation of India Limited), is a systemically important non-deposit taking NBFC registered with Reserve Bank of India. Presently STCI Finance Ltd is classified as a loan NBFC. STCI Finance Limited was promoted by Reserve Bank of India in May 1994 with the objective of fostering an active secondary market in Government of India Securities and Public Sector bonds. The Company had a subscribed and paid up capital of Rs 500 crores with RBI owning the majority stake of 50.18%. In 1996, STCI was authorized by RBI as one of the first Primary Dealers in India. As the leading Primary Dealer in the country, the Company was a market maker in government securities, corporate bonds and money market instruments apart from carrying out proprietary trading in equity both in the cash & derivatives (F&O) segment. The Company's other lines of activities included trading in interest rate swaps - both for hedging and market making. The Company enjoyed a successful track record of achieving profits during consecutive years spanning nearly a decade. It had the distinction of achieving secondary market turnover of more than Rs.2.00 lakh crore in sovereign paper. RBI divested its entire shareholding in STCI in two stages- first in 1997 to bring it down from 50.18% to 14.41% and the balance in 2002 to the existing shareholders. Bank of India became the largest shareholder in the company. In April 2006, the STCI took over UTI Securities Limited from Specified Undertaking of Unit Trust of India (SUUTI). The Company hived off Primary Dealership as a separate 100% subsidiary by the name of STCI Primary Dealer Limited (STCI-PD) which started functioning from June 25, 2007. The Company sold off its stake in UTI Securities Limited to Standard Chartered Bank (Mauritius) limited in three stages between 2008 and 2010. STCI assumed 100% stake in UTI Commodities, a commodity broking entity (later known as STCI Commodities Ltd) which was wholly owned by UTI Securities. Since 2007, the Company has been undertaking lending and investment activities as a Systemically Important - Non Deposit taking Non Banking Financial Company (NBFC-ND-SI) with main focus on lending and financing activities. Over a period of time, the size of the Company's loan book has grown and lending/financing activity has become its core business. With a view to reflecting the widening mix of its business, the name of the Company has been changed from Securities Trading Corporation of India Limited to 'STCI Finance Limited' with effect from October 24, 2011.