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| Edited By: Sachin P Mampatta |Source: DNA |Updated: Mar 17, 2018, 04:11 AM IST
The Bombay Stock Exchange (BSE) passed an enabling resolution allowing it to sell 6% stake in the exchange at a price of Rs 375 per share.
The decision was taken at the annual general meeting of Asia’s oldest bourse, held on Saturday.
“The move allows the company to sell the stake to a strategic investor as and when an opportune time arises,” said a person who was present at the meeting.
A BSE spokesperson declined comment.
There has been buying interest in the shares of the BSE with Argonaut Ventures, a private equity firm, and jewellery firm Blue Star Diamonds picked up a stake in the BSE in May.
The activity has been emerging on account of its plans to list itself and aggressive attempts to gain market share from its younger rival, the National Stock Exchange which has almost the entire share of the derivative trade in India and three-fourths of the turnover on the cash segment.
The BSE introduced mid month expiry in the derivatives segment and upgraded technological abilities through the acquisition of Marketplace Technologies in 2009.
It also reduced the membership deposit by 90% from Rs 1 crore to Rs 10 lakhs last month.
All of these are seen as attempts to better valuations prior to a long-planned listing of the organisation.
The BSE was earlier characterized as an association of persons and not a company. In 2007, it completed a process of demutualisation where stake was divested to non-trading members as well.
It placed 51% with 21 strategic investors including the Singapore Exchange and Deutsche Bourse. After the demutualisation process, around 700-800 brokers were issued 10,000 shares in the exchange.
The deal valued the exchange at Rs 3,780 crore, valuations similar to those of the enabling resolution.
The meeting also saw a move to allow employee stock option plan of up to 5% being passed.
Also, Uttam Bagri, the secretary of the BSE broker’s forum, was appointed on the board of the BSE. He replaces Prakash Kacholia, managing director of Emkay Global Financial Services.
