Deutsche Borse and Singapore exchange-SGX- to join BSE board

The capital market regulator, BSE, is understood to have approved the exchange's proposal to invite representatives of both the foreign partners on its board.

Deutsche borse and Singapore exchange have picked up 5 per cent equity each last year as part of divestment of 51 per cent equity to non-brokers investors to achieve demutualisation.

BSE's younger rival NSE already has NYSE-Euronext's  representative on its board.

Earlier Sebi is understood to have raised objection to 2 board seats for foreign investor representatives but the then CEO of BSE Rajnikant Patel has been able to convince the regulator that for BSE both are strategic investors and they should be permitted on the board.

Both the foreign investors have expressed their willingness to participate on the BSE board. Their participation is expected to improve corporate governance and help derivatives segment also, said the source in BSE.

These overseas exchanges were interested in seeing BSE's presence in commodity futures business also. According to the deal with NMCE, Ahmedabad-based commodity futures exchange is no longer there, it is now up to the board to decide in which way it will move in commodity futures business.