ICICI picks 1.33% in United Stock Exchange

Written by fe Bureaus | Mumbai | Updated: Jul 30 2010, 05:12am hrs
Private sector lender ICICI Bank on Monday picked up 1.33% stake in United Stock Exchange of India (USE), the new currency futures exchange. The size of the deal wasnt disclosed.

ICICI Bank, a major player in the foreign exchange market, is the 26th bank to become a shareholder of the exchange, which is expected to soon start operations in the currency derivatives segment.

HDFC bank, Bank of Baroda, Bank of India and Axis bank are some of the other shareholder banks in the exchange.

USE has the largest base of banks as investors compared to its competitors, MCX-SX and NSE, which have 18 and 9 banks as shareholders, respectively. This could help USE garner market share, as banks are major players in the forex market.

We now have the support of almost the entire Indian banking fraternity. This association will allow us to reach new customers in both institutional and retail segments thereby expanding currency trading in this country, said TS Narayanasami CEO and MD, USE.

The BSE holds 15% stake in USE. Major stakeholders are Jaypee Capital, MMTC, and Indian Potash.

USE will soon compete against MCX-SX and National Stock Exchange (NSE).