Day: March 24, 2025

Bank of America Corp (BofA) is set to undergo a leadership transition in its India operations, with Kaku Nakhate stepping down from her role as the country executive after 15 years at the helm. According to an internal memo seen by Bloomberg, Vikram Sahu, currently head of global equity research in New York, has been appointed as her successor. 

Sahu is expected to relocate to India in the second quarter of 2025 to take charge of the bank’s India franchise. Nakhate will continue to serve as CEO of BANA India until Sahu receives regulatory approvals for the position from the Reserve Bank of India (RBI). BANA India is the bank’s regulated entity in the country.

Despite stepping down from her executive role, Nakhate will remain with the firm, focusing on senior client relationships in India, the memo stated. 

The leadership change comes at a pivotal time for Bank of America, as the firm moves forward from an internal probe into alleged misconduct involving stock offerings. The investigation led to the departure of three India-based bankers last year, according to reports by Bloomberg. 

Bank of America is one of the world’s largest financial institutions, in terms of it global presence, range of services, and assets under management. The bank has had a presence in India since 1964.

In the quarter that ended on December 31, 2024, the bank reported that its net income climbed to $6.7 billion, or 82 cents per share, compared to $3.1 billion, or 35 cents per share, during the same period last year. On an adjusted basis, the bank earned 82 cents per share, surpassing analysts’ expectations of 77 cents, according to estimates compiled by LSEG. 

The results mirror those of other Wall Street giants like JPMorgan, Goldman Sachs, Wells Fargo, and Citigroup, all of which benefited from stronger equity markets and investment banking performance. BofA’s sales and trading revenue saw a 10 per cent rise, marking the 11th consecutive quarter of year-on-year growth. Equities revenue rose 6 per cent, while fixed income, currencies, and commodities surged 13 per cent.

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The National Stock Exchange of India (NSE) has started settling trades of its unlisted shares electronically from Monday. Central Depository Services India Ltd (CDSL) will facilitate these transactions, replacing the manual procedure, NSE said in an announcement on Friday. 

Despite this regulatory shift, NSE clarified that its shares will remain unlisted, meaning they will not be publicly traded on any stock exchange. However, the move ensures that off-market transfers comply with the Securities and Exchange Board of India’s (Sebi) Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (SECC Regulations). 

What are unlisted shares?

Unlisted shares are privately held shares of a company that do not have a market price on any public stock exchange. These include shares of startups or early-stage firms, companies such as NSE that are large but not listed, and companies that have been delisted.

What are the benefits of electronic transfer?

The decision aims to significantly shorten trade settlement times, reducing them from months to days. Previously, transactions required approval from both NSE and Sebi, delaying settlements by up to four to five months. 

The revised process is expected to boost trading activity in the grey market, where NSE’s unlisted shares have seen heightened demand—especially after BSE Ltd witnessed a nearly 5,000 per cent rise over the past five years, according to Bloomberg.

How can shareholders transfer NSE shares?

Shareholders can now transfer their unlisted NSE shares using a delivery instruction slip (DIS) through CDSL. The activation of NSE’s international securities identification number (ISIN) from March 24 enables electronic transfers, removing the need for manual submission of transfer applications in two stages.

The earlier Stage I and Stage II share transfer application process has been discontinued, NSE confirmed. 

Why now?

The move follows a directive from the market regulator last year, which pushed for a more structured framework for unlisted share transactions. While NSE has been exploring an IPO since first filing in 2016, regulatory hurdles have delayed its listing. 

However, Sebi recently cleared the exchange of any wrongdoing in a long-standing case related to unfair market access, removing a major obstacle to NSE’s potential listing.

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Mahindra & Mahindra (M&M) is reportedly in advanced discussions to acquire the entire stake held by Japan’s Sumitomo Corporation in Indian commercial vehicle manufacturer SML Isuzu, according to a CNBC-Awaaz report. 

The potential acquisition could mark M&M’s strategic entry into the trucks and buses segment, allowing it to expand beyond its current portfolio of passenger and light commercial vehicles. Sources told the channel that M&M is evaluating a share price of ₹1,400–1,500 for SML Isuzu in the proposed deal. 

Following the news, SML Isuzu shares surged 7.9 per cent intraday to hit a high of ₹1,785.80. At 2:40 pm, the stock was trading 5 per cent higher at ₹1,738.40, with the company’s market capitalisation reaching ₹2,518.57 crore. The stock has a 52-week high of ₹2,406.00 and a 52-week low of ₹1,030.90.

The report further stated that M&M’s board is expected to meet this week to assess the acquisition proposal. In response, M&M told the channel that it “does not wish to comment on the speculation.” 

As of December 2024, Sumitomo Corporation owned 43.96 per cent of SML Isuzu, according to stock exchange data. Japan’s Isuzu Motors, known globally for its SUVs and pickup trucks, holds a 15 per cent stake in SML Isuzu through a separate entity.

The company’s recent financial performance has been under pressure. SML Isuzu’s net profit plunged 80.22 per cent to ₹0.53 crore in the quarter ending December 2024, compared to ₹2.68 crore in the same period a year earlier. Sales fell 14.07 per cent year-on-year to ₹331.80 crore from ₹386.13 crore.

Meanwhile, M&M shares were trading 1.27 per cent lower at ₹2,766 apiece on the BSE at 2:40 pm on March 24. 

This is not the first time a potential acquisition for SML Isuzu has been reported. In June 2023, CNBC-TV18 reported that JBM Auto was among the frontrunners to acquire SML Isuzu, as Sumitomo Corporation was seeking to exit its India operations. 

If the deal goes through, M&M’s foray into the heavy vehicle segment could intensify competition in India’s commercial vehicle space, currently dominated by Tata Motors and Ashok Leyland.

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