Deutsche Bank to pick up 5% stake in DSE

Deutsche Bank to pick up 5% stake in DSE
Comment E-mail Print Share
First Published: Wed, May 21 2008. 04 15 PM IST
Updated: Wed, May 21 2008. 04 15 PM IST
PTI
New Delhi : Delhi Stock Exchange, which is in the process of operationalising its trading platform, is expected to get an investment from the Germany’s largest lender Deutsche Bank.
Deutsche Bank is likely to pick up 5% stake in DSE from the member brokers as the exchange has already divested its 51% to non-members, a top DSE official told PTI.
The bank is currently seeking Foreign Investment Promotion Board’s approval for acquiring stake in the bourse and stake transfer is expected to be completed within two months, he added.
DSE would not issue any fresh equity to the bank, but the member brokers would offer up to 5% of their stake, he said.
The exchange has reserves of Rs98 crore, bank balance of Rs75 crore and has 379 members. Currently, about 2,884 companies are listed on the DSE. Of these, 1,800 are exclusively listed on the bourse.
Earlier, the exchange sold five per cent stake to overseas firms for a consideration of Rs10.61 crore each. Some of the firms which picked up stakes were Mauritius-based Wilmette Holdings, Kuwait’s Noor Financial Investment and Ikarus Industrial Petroleum Company.
DSE stopped trading in 2003 after the new market conditions like emergence of uniform settlement system.
The bourse went for demutualised in September last year, following market regulator Sebi guidelines, which required each stock exchange to sell brokers’ 51% equity to separate their trading and ownership rights of bourses.
Comment E-mail Print Share
First Published: Wed, May 21 2008. 04 15 PM IST