The Hindu Business Line : BSE shortlists 10 investment bankers for divestment

THE Bombay Stock Exchange, which is set on the road towards corporatisation, has shortlisted 10 investment bankers to facilitate its divestment process.

The BSE, 49 per cent of which will now be owned by brokers, is looking for sound advice with regard to a business plan, Mr Rajnikant Patel, MD and CEO, told newspersons on Thursday.

The method of divestment may involve one or more of several options, including initial public offer, direct listing and offer for sale of equity, he said. He added that all possibilities will have to be examined.

The BSE, which now operates on a capital base of Rs 70 lakh, is also looking at taking in new members, and a scenario marked by a membership base of over 800. A number of members were taken in the past one year — many of them from centres such as Delhi and Kolkata.

"We are now a zero-debt organisation and do not need finance to run the exchange," Mr Patel maintained, while referring to BSE's reserves that now stand at Rs 500 crore.

The BSE is further working on a marketing drive, which will lead to a new office in Jaipur, and upgradation of its representative centre in Kolkata to a full-fledged office. The latter will help address membership and arbitration issues, it is pointed out. The exchange is establishing a new surveillance system, marked by extensive use of business intelligence. It has identified Wipro as its technological partner. The IT company will equip it with a customised solution, Mr Patel mentioned.

Plans lounge

BSE plans to tread a softer measure, courtesy a lounge that will soon come up on a floor to be dedicated for the purpose. The lounge will feature, inter-alia, what the BSE CEO describes as "corporate gift solutions."

"We have modelled it on the lines of certain overseas exchanges. In NYSE, for instance, one can buy souvenirs, including pens and other items, from a special zone that has been allowed by the exchange authorities," Mr Patel said.

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