Rs 80 Cr Sought For Depository

The Bombay Stock Exchange (BSE)is expected to seek an approval of Rs 80 crore from its members in the general body meeting to be held today for its depository project. The Central Deposit-ory Services is also expected to submit its application for the commencement of business to Sebi.

The extraordinary general meeting is expected to be a closed door affair. According to BSE sources, the bourse has already tied up with banks for an investment upto Rs 35 crore. These include SBI, Bank of India, Bank of Baroda and HDFC Bank. "We expect these banks to put in the promised sum. We will approach our members in the general body meeting and seek an approval for an amount of Rs 80 crore for the depository. This will result in completion of all formalities for commencing business," BSE source said.

 

Sebi regulations prescribe a minimum net worth criteria of Rs 100 crore. Sources said the exchange has to seek a nod from its members for investing in the depository. "The amendment in the I-T Act has paved the way for the bourse to invest in the depository. We want to ensure that there is no further delay in the commencement of business of the depository. For this purpose, we are seeking an approval for a higher amount from members. While the exchange does not have to invest the entire Rs 80 crore in the depository, the nod will give the necessary leverage in case of a shortfall," the source added.

BSE is also planning to rope in other exchanges. "Stock exchanges having a tie up with BSE through an MoU for BOLT will also be given the facility of the depository. We have received a favourable response from these bourses for an investment. BSE is also approaching other public and private sector banks for investment in the depository,"the source said.