E&Y, PwC, Deloitte & Touche in race for CSE advisor

Three multinational are in race for appointment as merchant banker and advisor to the CSE for its proposed 51% divestment process.

india Updated: Feb 17, 2006 12:47 IST

Three multinational consultants, Ernst & Young, PricewaterhouseCoopers and Deloitte & Touche are in race for appointment as merchant banker and advisor to the Calcutta Stock Exchange for its proposed 51 per cent divestment process.

"We have found three bids eligible. One bid was incomplete and was rejected at the meeting. The bids by E&Y, PwC and Deloitte & Touche would be evaluated and one will be selected soon," CSE sources close to the development said.

The sub-committee of CSE opened the bids and will evaluate them both on technical and financial grounds before zeroing on an advisor.

Based on the sub-committee recommendations the CSE administrator will finalise the advisor.

CSE officials said the next meeting was likely to be held on February 24 to take forward the one that remained in-conslusive on February 16.

The divestment of 51 per cent is mandatory to meet the Securities and Exchange Board of India de-mutualisation scheme.

However, CSE failed to get shareholders approval for change in its Memorandum of Association at its last AGM on November 23.

MoA amendment is necessary to pave the way for new provisions of the demutualisation scheme. Unless, this was done the divestment process could not be complete.

In order to take forward the ground work of the divestment process, the CSE has invited merchant bankers.

"We want to move ahead with the ground work process and we will update the matter to SEBI. The regulator will finalise another date for shareholders approval," CSE officials had said.

Brokers said they would continue to oppose the MoA agenda in future EGMs or AGMs till the bourse met their demand to issue rights shares at 1:1.

First Published: Feb 17, 2006 12:47 IST