Bids invited for 51% stake sale in Madras Exchange

Bids invited for 51% stake sale in Madras Exchange
PTI
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First Published: Mon, Jul 09 2007. 12 17 AM IST
Updated: Mon, Jul 09 2007. 12 17 AM IST
New Delhi: Madras Stock Exchange (MSE), the oldest stock exchange in South India, has invited bids to sell 51% brokers’ stake in the bourse as part of the scheme to separate brokers’ trading and ownership rights. Interested parties willing to bid up to a maximum of 5% equity of the MSE have been requested to submit their Expression of Interest (EoI) by 27 July.
The disinvestment is being carried out under the demutualization scheme for 11 stock exchanges approved by the Securities and Exchange Board of India in August 2005. Each stock exchange would mandatorily have to sell 51% of brokers’ equity to separate their trading and ownership rights of bourses. The process is called demutualization. The disinvestment of at least 51% would be made by the way of offer of sale or private placement or a combination of both.
In addition to this there could be induction of strategic or financial partners, the stock exchange said in the invitation of bids. Stock exchanges can sell 26% stake in bourses to foreign direct investors and 23% to foreign institutional investors. The MSE board reserves the right to accept or reject any EoI received without assigning any reasons, it said.
MSE has about 800 exclusively listed stocks. The exchange has a network of 158 brokers and had declared 100% interim dividend in 2006-07.
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First Published: Mon, Jul 09 2007. 12 17 AM IST