NSE buys 9.4% stake in NSDL from SUUTI

The National Stock Exchange (NSE) today bought 9.4 per cent stake in the country’s top depository, National Securities Depository Limited (NSDL), from Specified Undertaking of the Unit Trust of India (SUUTI), according to a release from ICICI Securities.

Following the deal, NSE’s stake in NSDL will rise to 25 per cent from 15.6 per cent. NSE will become the second-largest shareholder in NSDL after IDBI Bank, which holds 30 per cent stake in the depository. Post the deal, SUUTI’s stake in NSDL will come down to 15.58 per cent. ICICI Securities was the sole advisor to the deal.

Other stake holders in NSDL include State Bank of India (SBI), Oriental Bank of Commerce, Citibank, Standard Chartered Bank, HDFC Bank, HSBC, Deutsche Bank, Dena Bank, Canara Bank and Union Bank of India.

NSDL holds securities in depository accounts, which is more or less similar to holding funds in bank accounts. Although the financial details of the deal were not disclosed, market players estimated that NSDL was valued around Rs 970 crore.

NSE’s rival, the Bombay Stock Exchange (BSE), is trying to increase its stake in NSDL’s rival, Central Depository Services Ltd. BSE holds 36.5 per cent stake in CDSL, which it wants to increase it to 51 per cent. According to reliable sources, BSE has valued CDSL around Rs 1,000 crore.