Ahmedabad exchange looks for strategic sale in broking arm

Ahmedabad exchange looks for strategic sale in broking arm
PTI
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First Published: Fri, Jun 08 2007. 01 50 AM IST
Updated: Fri, Jun 08 2007. 01 50 AM IST
Mumbai: India’s second oldest bourse, the Ahmedabad Stock Exchange (ASE), is scouting for strategic investors to sell its 26% stake in broking subsidiary Ahmedabad Stock Exchange Capital Ltd (ACML).
“ACML, incorporated in the year 2000, intends to expand its operations nationwide by inviting and inducting strategic investors, for a strategic stake of up to 26% in the company,” the bourse said in a notice inviting expression of interest (EoI) from investors.
The strategic investor could include domestic or foreign firms, banks, multilateral companies and financial institutions, ASE said.
Currently, the exchange holds about 55% stake in the broking arm and the balance 45% is held by members of the exchange and ASE Capital Market Development Board.
ACML has more than 180 registered sub-brokers with 500 trading terminals and the average daily turnover is about Rs77 crore. It is also a depositary participant of the National Securities Depository Ltd.
Earlier, the Pune Stock Exchange (PSE) had also invited EoIs from investors to sell its entire 56.94% stake in broking arm PSE Securities Ltd (PSESL).
The move is expected to improve business prospects of PSESL, open up opportunities to expand in new areas such as derivatives, Internet trading, marketing of IPOs or mutual funds and portfolio management service, it had said.
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First Published: Fri, Jun 08 2007. 01 50 AM IST