The Deutsche Borse and SGX buying 5 per cent equity each in the Bombay Stock Exchange (BSE), could be just the beginning. As many as 60 investors, overseas and domestic, private and institutional, have evinced interest in buying equity in the BSE.

According to the buzz in the investment banking circles, the interested parties include some big names from Singapore and Europe, such as Temasek and GIC (an investment subsidiary of the Singapore government). DEG, the private equity arm of Deutsche Bank, is also said to be in the fray.

The advisors to the BSE, in its demutualisation process, have asked the prospective investors to submit binding offers. Some of these proposals can be cleared by the Indian exchange in the first week of next month.

The BSE can divest up to 16 per cent equity, as the cap on foreign direct investment is 26 per cent.

Foreign Institutional Investors can buy another 23 per cent, but only through the secondary market. However, the BSE's Initial Public Offering may not happen for some time and that closes the secondary market option.

Many domestic institutional investors are also eagerly waiting to buy equity in the BSE, though the divestment so far by Indian stock exchanges has been in favour of foreign investors only.

In April, the process of divesting brokers' holding in the BSE is expected to be over. The move has received good response and the exchange has received more than the required number of shares. It may keep the additional shares under the greenshoe option.