BSE Ltd, the corporatised avatar of erstwhile The Stock Exchange, Mumbai (BSE), is expected to be listed before the end of the current financial year. Jagdish Capoor, chairman, BSE Ltd, made an announcement to this effect on Thursday at the first annual meeting of the exchange after it was demutualised.
?It has been decided to list the equity shares of BSE on the domestic bourses before March 2008, after all the regulatory procedures are complied with,? Capoor said. According to stockbroking sources, the listing of BSE shares is now before market regulator Securities & Exchange Board of India (Sebi), which is deliberating this first-of-a-kind issue.
Meanwhile, a debate has ensued over whether BSE?s shares should be listed on both the BSE and NSE, or whether on the NSE exclusively. One school of thought believes listing on the NSE alone would be better as the obvious conflict of interest between the management of BSE Ltd and of the exchange itself can be avoided. The Sebi-appointed Anantharaman panel, set up in 2005 to decide the future of regional stock exchanges, had recommended cross-listing of stock exchange shares (shares of one stock exchange to be listed on another stock exchange).
The sources also said that though the listing of BSE shares was not on the AGM?s agenda, the issue was raised by some member-brokers and Capoor?s statement came as a response to questions posed by them. BSE brokers were also unhappy with the dividend declared by the exchange management. They asked for at least 50% of the exchange?s net profit to be distributed as dividend. BSE recorded Rs 62 as earning per share for FY07.