LIC eyes 10% stake in CDSL from BSE for about Rs 83 crore
State-owned life insurer LIC is likely to buy 10% stake in Central Depository Services Ltd (CDSL) from BSE in a deal that may value the leading depository at about Rs 825 crore.
State-owned life insurer LIC is likely to buy 10% stake in Central Depository Services Ltd (CDSL) from BSE in a deal that may value the leading depository at about Rs 825 crore.
At this valuation, the 10% stake will be worth Rs 82.5 crore sources said. BSE, which holds 54.20% stake in CDSL, is paring its stake in the depository to comply with the capital markets regulator Sebi norm.
The Securities and Exchange Board of India (Sebi) in April 2012 had said that a single stock exchange can not have more than 24% in a depository. The regulator had given three years time to exchanges to comply with the rules.
Earlier Canara Bank was also in the race to pick up BSE's stake in CDSL.
Other shareholders in CDSL are Bank of India, Bank of Baroda, State Bank of India, HDFC Bank, Canara Bank, Standard Chartered Bank,
Union Bank of India, Bank of Maharashtra and Calcutta Stock Exchange.
CDSL allows investors to deposit securities by opening an account. The securities such as shares, debentures, bonds of investors are held in electronic form (dematerialised form) at the depositories. It has a little over 1.02 crore investor accounts.