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Promoters of NSE want public issue
Anindita Dey in Mumbai | November 14, 2007 09:17 IST
According to sources close to the development, the IPO will provide an easy exit route to the banks and FIs to bring down their respective stakeholding to 5 per cent as required under the new demutualisation guidelines of the Securities and Exchange Board of India (Sebi).
Under the guidelines, any single entity holding in a stock exchange - either in the form of institutions or banks or single individual - should not exceed five per cent.
Following these guidelines, NSE has written to most of the promoters to bring down the stake to five per cent by October 2008, said an institutional source.
According to sources, the matter will be discussed in the board meeting of the exchange scheduled to be held in the last week of this month. A faxed query to the NSE seeking its views on this issue elicited no response.
Sources in financial institutions said that the private placement route to divest stake is expensive since the transaction cost goes up. "It becomes cumbersome for us to scout around for interested parties to offload the stake," said sources.
Major NSE stakeholders