FIPB to take up DSE's stake sale proposal on Friday | business | Hindustan Times
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FIPB to take up DSE's stake sale proposal on Friday

business Updated: Aug 15, 2007 12:48 IST
Foreign Investment Promotion Board

The Foreign Investment Promotion Board will later this week consider proposals by four foreign entities to buy a total of 16 per cent stake in Delhi Stock Exchange to ensure the bourse completes the process of selling 51 per cent brokers' stake before the August 28 deadline.

The proposals, if approved, would bring in Rs 33.92 crore of foreign direct investment into the country, sources said.

Proposals by Mauritius-based entities Wilmette Holdings Ltd and Passport India Investments Ltd and Noor Financial Investment Company of Kuwait to buy five per cent stake each would come up at the meeting on Friday, August 17.

Another proposal by NRI Bhupendra Kumar Modi to buy one per cent stake would also be taken up, the sources said.

Besides FIPB nod, DSE has to seek SEBI approval also to sell the stake to these four entities.

The DSE Board of Director has also approved two proposals by US-based Lamb Company LLC and Kuwait Privatisation Project Holding to pick five per cent stake each and sent to FIPB.

Though these two proposals are not there in the FIPB meeting agenda so far, DSE officials are hoping they would be taken up as additional items since the deadline of August 28 set up SEBI to complete the stake sale was approaching.

As per SEBI norms, all stock exchange have to sell 51 per cent stake of broker members within a stipulated time frame. The process is called demutualisation and can also be completed by selling 26 per cent stake to those bringing FDI.

DSE has also decided to sell five per cent stake each to media house Bennett, Coleman & Company, Financial Technologies and realty firm Parsvnath Developers and sought SEBI approval.

The DSE Board is also considering proposals by some other domestic companies, including those of media house Television Eighteen and Liberty Shoes, the sources said.