Temasek-backed
Fullerton Securities has acquired the wealth management division of
Mumbai-based
Pioneer Investcorp PINC, a Bombay-listed financial services company,
according to online Indian publication mydigitalfc.com.

The
difficult business environment in retail broking business, coupled with PINC’s
plan to focus on investment banking and institutional broking led to the
merger, said a person close to the development, as cited by the publication.

Ahead of PINC shutting its retail business, Sandip Raichura, who was heading its
wealth management division, left the firm to set up Castanea Wealth Management.
Raichura has taken with him eight ex-PINC officials to Castanea.

“The
decision to merge the business was taken at the behest of both the managements
for the benefit of employees,” a former PINC employee said. He said all
employees (excluding those who joined Castanea) joined Fullerton Securities.

PINC’s
decision to exit the retail business follows the downturn in the equity broking
business due to low volumes and thin margins amid cut-throat competitions.
Several other brokerages have either shut down business or reduced staff
strength significantly following the downturn in equity broking business this
year. Alchemy Shares and Stock Brokers and Mata Securities both reportedly recently shut
business lines.