Business Standard

Promoters of NSE want public issue

Related News

The major promoters of the ( NSE) "" "" 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.
 
IN SYNC
Major NSE stakeholders
 
  • SBI: 9 per cent
  • LIC: 12 per cent
  • SHCIL: 7 per cent
  • IFCI: 6.65 per cent
  • SBI Capital: 3 per cent
  •  
     

    Read more on:   
    |
    |
    |
    |

    Promoters of NSE want public issue

    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.
    The major promoters of the ( NSE) "" "" 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.
     
    IN SYNC
    Major NSE stakeholders
     
  • SBI: 9 per cent
  • LIC: 12 per cent
  • SHCIL: 7 per cent
  • IFCI: 6.65 per cent
  • SBI Capital: 3 per cent
  •  
     
    image

    Read More

    P-Note investments rise 6-mth high at Rs 1.68 lakh cr in May

    Investments into Indian shares through participatory notes (P-Notes), a preferred route for HNIs and hedge funds from abroad, hit six-month high of ...

    Recommended for you

    Advertisements

    Quick Links

    Market News

    Seamec surges on share buyback plan

    The stock has rallied 10% to Rs 111 on the NSE.

    Lupin gains on inclusion in Sensex from June 22

    Lupin has outperformed the market by surging 8.6% from its recent lows of Rs 1,633 on May 14, despite reporting disappointing set of numbers for ...

    Markets have a soft start; Sensex hovers at 27,800

    The FMCG and metal stocks are dragging the markets lower, while the IT stocks are trading higher on the back of a weak rupee.

    Rolta India dips on weak March quarter results

    The stock slipped 8% to Rs 115 after the consolidated net profit more than halved at Rs 36.01 crore for the quarter ended March 31, 2015.

    Discount brokerages offer exclusive, cheaper trading strategies

    Discount brokerages open up a whole new avenue of money making opportunities for retail investors

     

    Back to Top