KUALA LUMPUR: Foreign parties have expressed interest in acquiring a stake in local standalone investment banks (IBs) after the foreign shareholding cap on IBs have been increased to 70%, according to ECM Libra Financial Group Bhd chairman Datuk Seri Kalimullah Hassan.

"There has been interest shown in some of the IBs by foreign parties," he told reporters after the company's AGM on May 20, declining to comment whether ECM Libra was one of the IBs.

Kalimullah said the foreign shareholders had always wanted a majority stake should they invest and therefore, the 70% was very attractive.

"In the past, they always wanted control at least 51% but then, the foriegn shareholding allowed was capped at 49%. Now that it's 70%, it has become more attractive to them," he explained.

Moving forward, Kalimullah said the IB would continue to focus on their niche and remain careful. "We'll not go into risky businesses," he noted.

He said 2009 has been a promising start with brokerage income up almost threefold. "We are now beginning to see interest in people doing deals again," he added.