The BSE shares were sold at Rs 5,200 apiece, the same price at which it issued shares to Germany's Deutsche Boerse and Singapore Exchange Ltd (SGX), valuing the exchange at nearly $1 billion.

Earlier, National Stock Exchange had sold 26 per cent to a group of foreign investors, including New York Stock Exchange (NYSE), valuing the country's biggest bourse in terms of trading volumes at $2.3 billion.

The 800-odd brokers in BSE sold nearly half their shareholding, constituting 41 per cent equity stake in the exchange. This would mean these members have collectively received Rs 1,600 crore through the stake sale.

The list of investors includes six foreign entities, including Deutsche Boerse and SGX, which bought 5 per cent each recently, paying Rs 189 crore each.

The other foreign investors in the deal are US private equity fund Atticus Mauritius Ltd and Caldwell Asset Management. Both are buying 4 per cent in the exchange.

The other two foreign investors are Dubai Financial and Katrel Investment Ltd, Cyprus. Together, these four overseas investors have picked up 16 per cent in BSE.

Foreign direct investment in an Indian stock exchange is capped at 26 per cent, with no single entity allowed to buy more than 5 per cent.

According to sources in the Foreign Investment Promotion Board (FIPB), Finance Minister P Chidambaram has cleared the sale of 16 per cent stake in Bombay Stock Exchange to the four foreign entities.

Usually, FIPB clears proposals, after which the finance minister examines them. With the demutualisation deadline approaching and no FIPB meeting scheduled in between, the applications were directly sent for the finance minister's approval. The applications of SGX and Deutsche Boerse were cleared earlier.

Four domestic financial institutions have also bought stakes in BSE � Life Insurance Corporation of India (5 per cent), State Bank of India (4-5 per cent), Bank of India and Central Bank.

Corporate houses Bajaj Auto, Bennett Coleman and Mahindra & Mahindra and high net worth individuals K Gopalakrishnan, Infosys CEO and N S Raghavan, director, are also buying stakes in BSE, according to sources.

By separating ownership and trading rights and creating a corporate governance structure, demutualisation helps stock exchanges to access capital markets to meet their resource needs. BSE is the second exchange in India to be demutualised. The National Stock Exchange has had a demutualised structure since its inception.

Rajnikant Patel, managing director & CEO of BSE, said: "The successful completion of the demutualisation scheme represents a watershed in the history of the BSE. With the new ownership structure in place, BSE is well poised to pursue growth opportunities."

The Log Book

December 22, 2006: Sebi issues regulations for foreign investments in stock exchanges. Total foreign investments in bourses set at 49%, FDI at 26% and FII at 23%. Maximum investment by a single entity capped at 5%

February 14, 2007: Deutsche Boerse picks up 5 % for Rs 189 crore at Rs 5,200 per share

March 7, 2007: Singapore Exchange (SGX) buys 5 % for the same amount

May 19, 2007: BSE completes demutalisation.