Inter-connected Stock Exchange board to short-list bidders

 

The Inter-connected Stock Exchange of India (ISE), an exchange promoted by a dozen regional exchanges, will have a board meeting on Tuesday to decide on the sale of its broking subsidiary.

Around 12 entities have expressed interest in picking up the broking company, said an official with direct knowledge of the matter.

“A short-list of five candidates will be prepared following the board meeting tomorrow,” said the person.

The entities who have bid include financial institutions as well as broking companies, according to the person.

All of them would interact with board members before the shortlist is prepared, said the person.

ISE Securities & Services Ltd is spread across 80 locations. It has 456 registered sub-brokers and authorized persons on the National Stock Exchange and 280 on the BSE, according to figures from company documents and its website.

It generated turnover of Rs.31,938 crore on the two national exchanges during the financial year ending in March 2012. It had a total income of Rs.10.27 crores and a profit after tax of Rs.1.61 crore for the year.

The sale of the subsidiary was a precondition from the stock market regulator before the exchange could start operations.
The exchange had subsequently come out with an advertisement inviting bidders, with a dead-line of March 22.