The Hindu Business Line : DSE demutualisation process complete

New Delhi, Aug. 27 The demutualisation process of the Delhi Stock Exchange (DSE) is now completed, with the Securities and Exchange Board of India giving its approval to a set of investors who would in aggregate pick up 51 per cent stake in the stock exchange.

The last date for completion of demutualisation process of DSE, which was one of the oldest stock exchanges, was August 28.

“We have today received approval of SEBI and the process is completed. The shares have been allotted to investors who have cumulatively got 51 per cent,” Mr Bharat Bhushan Sahny, Chairman, DSE Demutualisation Committee confirmed to Business Line.

Of the 51 per cent, he said foreign direct investment (FDI) component is 15 per cent and the balance 36 per cent from other investors including some domestic corporate houses.

One pulls out

Although Foreign Investment Promotion Board (FIPB) had recommended and subsequently the Finance Minister, Mr P. Chidambaram, had given his approval to four foreign investors for picking up to 5 per cent each in the DSE, Mr Sahny said one of the investors had decided to withdraw and hence the FDI component came to 15 per cent. He, however, declined to name the investor who had pulled out.

The four foreign investors who received FIPB nod earlier, were Wilmette Holdings, Mauritius, Noor Financial Investment Company, Kuwait, Ikarus Industrial Petroleum Company, Kuwait and Kuwait Privatisation Projects Holding Company, Kuwait. The total foreign investment inflow approved was about Rs 42 crore (Rs 10.6 crore each from four investors). Incidentally, FIPB had rejected an investment proposal of Passport India Investments (Mauritius) Ltd at its meeting on August 17.

Meanwhile, two more foreign investors –New Vernon Private Equity Ltd, Mauritius and Passport Global Master Fund SPC Ltd, British Virgin Islands – have evinced interest in picking up to 5 per cent stake each in DSE with the inflow of up to Rs 10.6 crore each. The foreign investment proposals of these two entities are to be considered by FIPB at its forthcoming meeting on August 31, 2007.

“These two proposals are in addition to the 51 per cent that we have already allotted. There is nothing to bar us from allotting beyond 51 per cent so long as we are within the FDI cap. Since one investor is withdrawing, we have enough room to bring in two new investors,” the DSE official said.