Thursday, December 8 2005 10:39 Hrs (IST) - World Time -

New York: Expressing commitment to continue its participation in India's growth, one of the world's leading wealth management and financial advisory companies Merrill Lynch has announced increase in its stake in its joint venture DSP Merrill Lynch to 90 per cent for about $500 million.

The increased ownership by Merrill Lynch, the company said, would enable its joint venture firm to build its presence as one of the leading securities firm in India.

Hemendra Kothari will continue as Chairman of DSP Merrill Lynch and will take on added responsibility as a vice chairman of Merrill Lynch International supporting Merrill Lynch's growth plans internationally and assisting Indian companies in their global endeavors. He will also be a member of the Merrill Lynch Asia Pacific Executive Management Committee.

Merrill Lynch's relationship with DSP began in the 1980's and grew into a joint venture in 1995. The business will continue to operate under the name DSP Merrill Lynch.

"We have tremendous confidence in Hemendra Kothari and the talented team at DSP Merrill Lynch," said Stan O'Neal, chairman and CEO of Merrill Lynch.

"As a result of this change we will be able to accelerate our plans for growth in this robust market," he said.

"Merrill Lynch's global distribution network, product capabilities, client franchise, infrastructure and highly regarded brand provide an exceptional platform to service our clients," said Kothari.

The deal is expected to close in the first half of 2006 and is subject to various regulatory approvals.

Merrill Lynch will make an offer for the publicly traded shares of DSPML and will make an application for delisting from the Bombay Stock Exchange, the company said.