IndusInd Bank Terminates Contract to Acquire IL&FS Securities Services

New Delhi, November 13: Private sector lender IndusInd Bank Tuesday said its agreement to fully acquire IL&FS Securities Services Ltd (ISSL) has been terminated due to non fulfilment of conditions. In June this year IndusInd Bank had signed a share purchase agreement with Infrastructure Leasing and Financial Services Ltd (IL&FS) to acquire its securities services subsidiary. "The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period," IndusInd Bank said in a regulatory filing.

ISSL, incorporated in 2007, is a capital market intermediary for professional clearing, depository and custodial services and caters to both retail and institutional clients including over 1,000 brokers, FPIs and FIIs. "We understand that the newly constructed board of directors of IL&FS has decided to initiate a new process for the sale of its equity interests in ISSL," IndusInd Bank added. Meanwhile, In a bid to monetise its assets, crisis-ridden IL&FS Monday initiated the process for divesting its stake in IL&FS Securities Services and ISSL Settlement & Transaction Services. Debt-Ridden IL&FS Taken Over by Govt, Uday Kotak and GC Chaturvedi to be Part of New Board.

"As stated in the said Report, it is the objective of the board to achieve, by one or more plan(s), the resolution of the IL&FS group through certain measures, including asset divestments," the debt-ridden company said in a statement Monday. The release further said that in order to ascertain market interest, and to examine feasibility of maximisation of value in an orderly and transparent manner, the board, while continuing to evaluate all options, on Monday initiated the process of exploring the sale of an asset engaged in the securities services business. Shares of IndusInd Bank were trading 1.36 per cent lower at Rs 1,471.35 apiece on BSE.