Economy, Business And Markets

Iranian Bank, Indian Fund Form Joint Venture

Iranian Bank, Indian Fund Form Joint Venture Iranian Bank, Indian Fund Form Joint Venture

Pradip Shah's IndAsia Fund Advisors and Iranian Middle East Bank have formed a joint venture to explore investment opportunities between India and Iran.

The deal comes ahead of the June 30 deadline for a possible accord between the six world powers and Iran, which both sides hope to end a 12-year nuclear dispute and terminate the economic sanctions against Tehran.

The new venture is called MEB-IndAsia Corporate Advisors Pvt. "It will advise companies on trade and investment opportunities between Iran and India," Shah, founder of IndAsia, a boutique investment bank said, The Economic Times reported on Monday.

The venture hopes to enlist Indian companies to do business in Iran, which has a population of 78 million. Iran has the capacity to pay with its oil production capacity of four million barrels per day; however, it is currently pumping much less than that.

Iran has $8.8 billion of interest-free funds lying idle in India because of the sanctions. These could possibly be a source of foreign direct investment in India that the venture hopes to tap, the report said.

"Iran will offer exciting opportunities for trade and investment soon, as a framework for lifting sanctions is expected to be signed between the US and Iran by June 30," said