The US-based Depository Trust & Clearing Corporation is planning to pick up 5 per cent stake in the Bombay Stock Exchange.
The other contenders are Temasek and The Government of Singapore Investment Corporation, a subsidiary of the Singapore government.
The price the entities would pay is Rs 5,200 a share -- the same paid by Deutsche Borse and Singapore Stock Exchange.
DTCC is a leading US-based depository and clearing house. Its keenness in picking up stake in the Indian stock exchange stems from the fact that the BSE also has a clearing corporation. Globally, only a few exchanges have such in-house clearing and settlement facilities.
DTCC has many other plans for the Indian securities business. It is planning to sign memoranda of understanding with Indian depositories for exchange of information. But, sources said, DTCC can outsource some of its international clearing and settlement jobs to Indian depositories at a later stage.
Once the pacts are signed, domestic depositories hope to get the custodian business of foreign institutional investors in India. Currently this business is only with a few foreign custodians.
DTCC is also interested in equity participation in the Indian depository and clearing corporations, as foreign direct investment guidelines allows this.
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives transactions.
The US firm also provides custody and asset servicing for more than two million securities issues from the US and 100 other countries.
