The Hindu Business Line : Deutsche Bank AG gets nod to pick up to 5% stake in DSE

The Finance Minister, Mr P Chidambaram, has cleared the Deutsche Bank’s proposal that could bring in foreign direct investment of about Rs 13.47 crore.

The Foreign Investment Promotion Board (FIPB) had earlier recommended the Deutsche Bank proposal for the Finance Minister’s approval.

Deutsche Bank could acquire the 5 per cent stake in DSE from member brokers. DSE was de-mutualised in September 2007, following Securities and Exchange Board of India directive to separate trading and ownership rights of members, with 51 per cent stake divested to non-members.

Foreign investors

Of the 51 per cent, the Government guidelines prescribe foreign direct investment limit in stock exchanges at 26 per cent. Currently, foreign investors including Willmette Holdings, New Vernon Private Equity and Passport Global cumulatively hold 21 per cent, with each investor holding a maximum of 5 per cent stake in the exchange.

“Technically, there is still a gap of 5 per cent to complete the FDI limit of 26 per cent in DSE. Deutsche Bank could fill that gap now that they have received FIPB approval. They can now buy any DSE member’s stake up to 5 per cent”, a DSE official said.

More Stories on : Stock Exchanges | Policy | Foreign Direct Investment | Foreign Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ING advises global component to investor portfolio

Deutsche Bank AG gets nod to pick up to 5% stake in DSE

Markets this Week

TPG Newbridge may invest in Shriram City Union

Goodearth Maritime plans IPO by year-end