Goldman Sachs buys stake in India credit firm-paper

MUMBAI, March 12 (Reuters) - Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) has bought a 20 percent stake in India's Shriram Credit for 3 billion rupees ($75 million) and has an option to buy another 5 percent, the Economic Times said on Wednesday, citing unnamed sources.

The stake in the non-banking finance company gave the U.S. investment bank an indirect entry into the equity and commodity brokerage business in India, the paper said.

A spokesman for Goldman was not immediately available.

An official at Shriram Credit told the paper they were still in talks with potential buyers.

"We are in discussions with prospective investors for a minority stake in Shriram Credit, which will eventually hold both the broking and distribution business," D.V. Ravi, managing director of Shriram Financial Services Holdings, told the paper.

Goldman Sachs recently bought small stakes in the National Stock Exchange and the National Commodity and Derivatives Exchange, and has been looking to expand its presence in India.

Foreign banks such as Goldman are building up in India ahead of a planned review in 2009 which may ease some curbs on them. ($1=40.5 rupees) (Reporting by Rina Chandran; Editing by John Mair)