Reliance Capital is preparing to enter a strategic partnership with Daiwa Securities to establish a new investment banking business in India, the Economic Times (of India) writes.

Through its subsidiary, Reliance Securities, RelCap will ally with Japan's second-largest investment bank to target Japan's large pool of high net worth individuals looking to invest in India.

"Indian companies that are in the midst of expansion are looking at global capital," a source who declined to be named told the publication. He cited Japan as having perhaps the largest number of HNWIs interested in bringing their investments abroad. "This alliance will marry these two requirements," he reportedly added.

At present, Daiwa's exposure to India involves advisory roles to certain institutions, such as EXIM Bank and Indian Railways Finance Corporation.

Negotiations between the two firms are in the advanced stages, the news service said, citing two other officials involved in the talks.

A Reliance spokesperson declined to comment on the matter. WealthBriefing Asia has yet to receive a reply from Daiwa Securities.