The National Stock Exchange (NSE) of India is keen on purchasing 25% stake in Bangladesh’s Dhaka Stock Exchange (DSE) as the bourse thinks that it is “well-positioned” to help grow the Bangladesh market, according to a report by Bloomberg.
While the process of bidding is still on, India and China have locked horns over the strategic influence on the DSE. The Indian bourse has offered Rs 11.68 per share (15 takas) during the tender process for the 25% of the stock exchange stake, or 1.8 billion shares. However, a Chinese consortium led by the Shanghai Stock Exchange (SSE) is bidding for the same.
The Chinese consortium led by SSE and Shenzhen Stock Exchange (SZSE), meanwhile, submitted tender offering 22 takas a share for 25% of the exchange. According to an English daily of Bangladesh, while the DSE is in favour of the Chinese consortium, country’s regulator Bangladesh Security and Exchange Commission (BSEC) wants DSE to go ahead with Indian consortium led NSE.
Chinese consortium, earlier in 2016, bought 40% stake in the Pakistan Stock Exchange. The decision on the bidding is scheduled on February 19. It was also reported that India wants two director positions in the DSE. Meanwhile, India’s leading stock exchange Bombay Stock Exchange (BSE) has suggested that leading foreign exchanges should be allowed to have 49% stake in Indian stock exchanges.
Currently, global bourses are allowed to have only 5% in Indian exchanges. The BSE suggested that the government may amend the foreign ownership policy to 15%, however, it wanted that it should be between 26-49%.