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US banking giant Citigroup Inc becomes the seventh foreign company to grant a stockbroking licence from The Securities Commission Malaysia (SC). However, it will be focusing its business model on foreign and domestic institutional business. Any variations to the business model are subject to the SC’s approval.

Citi was expected to play an important role in increasing the flow of funds from the Middle East as it has a strong presence in the Gulf. This licence approval underlines Citi’s continued investment in Asia and its desire to play an expanded role in the local Malaysian capital market.

In granting the approval, the SC had considered, amongst others, the scope of operations that will be established by Citigroup in Malaysia, their stockbroking and capital market experience, expertise, geographical presence and commitment to the Malaysian capital market.

The licence is one of the three stockbroking licences that were available for leading foreign firms under the Budget 2008 measures to strengthen Malaysia’s capital market and encourage greater intermediation of investment flows between the Middle East and Malaysia. Japan’s top brokerage, Nomura Holdings, received the first in SEPT 2009.

There are total of 34 approved brokers in Malaysia and with the latest addition of Citigroup the number will increase to 35. You can check for details of the list of brokers in Malaysia at HERE.