Sebi, CCI approves BSE-USE merger

Written by Ankit Doshi | Mumbai | Updated: Sep 2 2014, 02:36am hrs
Market regulator Securities and Exchange Board of India (Sebi) and Competition Commission of India (CCI) have approved the proposed merger of United Stock Exchange of India with BSE.

The application for the merger of BSE with USE is also filed before the Bombay High Court for approval, BSE said in a press release late on Monday.

The boards of the BSE and the USE had approved the merger of both the exchanges in May this year. Under the merger terms, a USE shareholder will get 1 share of BSE for every 385 shares held. The merger will lead to dilution of around 3.2% for BSE.

BSE currently holds 14.56% in USE and had invested Rs 22 crore. The deal values BSE at Rs 3,900 crore and USE at Rs 150 crore. The move is aimed at giving a boost to BSE's stressed currency trading business that is dominated by rival National Stock Exchange (NSE).