Sebi heat forces DSE to drop 51% stake sale

New Delhi, Nov 14 | Updated: Nov 15 2005, 05:50am hrs
Members of the Delhi Stock Exchange (DSE) on Monday dropped the resolution to sell 51% stake of the exchange to strategic investors. Though a meeting was held on Monday to take the demutualisation plan forward, the members decided to adhere to the Securities and Exchange Board of India (Sebi) directive.

The market regulator had on November 4 written to the DSE board asking it to desist from selling 51% stake to strategic investors and said that it has to be through a fresh issue of shares through a public offer.

"We have decided to respect the Sebi orders. We do not wish any confrontation with the regulator," a member of the DSE said after the meeting. It is also learnt that the future course of action on the demutualisation plan of the exchange would be decided in accordance with the Sebi regulations.

Earlier, the members had proposed to pass a resolution in order to transfer all the shares of the exchange to an Escrow account. According to the proposal, all registered shareholders were to sell 51% of their one share of Rs 2,000 each. A number of entities, including Shankar Sharmas First Global and Vardhaman Leasing, had earlier shown an interest in picking up stake in the DSE.