|The major promoters of the National Stock Exchange ( NSE) "" banks and financial institutions "" have suggested to the stock exchange that it should float an initial public offer.|
|According to sources close to the development, the IPO will provide a easy exit route to the banks and FIs to bring down their respective stakeholding to 5 per cent as required under the new demutualisation guidelines of the Securities and Exchange Board of India (Sebi).|
|Under the guidelines, any single entity holding in a stock exchange "" either in the form of institutions or banks or single individual "" should not exceed five per cent.|
|Following these guidelines, NSE has written to most of the promoters to bring down the stake to five per cent by October 2008, said an institutional source.|
|According to sources, the matter will be discussed in the board meeting of the exchange scheduled to be held in the last week of this month.|
|A faxed query to the NSE seeking its views on this issue elicited no response.|
|Sources in financial institutions said that the private placement route to divest stake is expensive since the transaction cost goes up.|
|"It becomes cumbersome for us to scout around for interested parties to offload the stake," said sources.
Major NSE stakeholders
Investments into Indian shares through participatory notes (P-Notes), a preferred route for HNIs and hedge funds from abroad, hit six-month high of ...