The Bombay Stock Exchange (BSE) is finalising modalities to get listed on the Indian stock exchanges. The exchange has set up an IPO committee and hopes to complete the process in the first or second quarter of CY13.
Buoyed by investments made by a US-based qualified financial institution (QFI) in July ? the first QFI to invest in the Indian market ? the BSE would facilitate setting up of brokerage offices abroad to attract such investments. The first such office would be set up in Dubai in September, said Ashishkumar Chauhan, interim CEO, BSE.
In Chennai to create awareness about the new BSE 100 index, Chauhan told reporters: ?We are looking at getting listed on one of the stock exchanges. We have even set up an IPO committee in this regard, which will prepare the draft red herring prospectus too.? To a question, he said: ?We hope to get listed in the first or second quarter of CY13 and will come out with an offer of sale. We are a cash-rich exchange and want to give investors an exit route. An IPO would be the best option.?
Currently, broking houses hold around 43% in the exchange, followed by FIIs (39%) and FIs and retail with the rest. ?As per the Sebi rules, we need to dilute up to 25%. The exchange will work this out with the existing investors.?
Chauhan said the exchange wants to capitalise on QFI investments. ?A US-based QFI had invested a good amount for a decent volume of equity shares. We need to attract such investments in a big way.? He said the BSE 100 index has become a major success, having helped broking houses save almost R1,200 crore annually. ?The daily volume has gone up to R35,000-45,000 crore a day,? he said.
