IDBI Capital has received the mandate for finding a buyer for a 5 per cent stake in India's largest bourse, the National Stock Exchange, according to sources at the investment bank. It is not known which of the promoters is offloading the stake.

The 5 per cent stake is valued between Rs 900 crore and Rs 1,000 crore, thus valuing the bourse at Rs 20,000 crore.

Bids for this 5 per cent stake can be submitted until March 11.

On July 30, 2010, rival exchange BSE saw Soros fund management buying SGX's 4 per cent stake in the exchange for $40 million valuing BSE at a billion dollars or Rs 4,600 crore.

Temasek picked up a 5 per cent stake in the NSE on May 3, 2010, while Financial Technologies sold nearly one per cent in the exchange for Rs 167.2 crore in November 2010, valuing the NSE at Rs 16,720 crore.

The Jalan Committee report on market infrastructure institutions has recommended that exchanges should not be allowed to list as the regulatory function of a bourse is more important than its commercial function. Exchanges are the first-line regulators in the Indian capital market, observed the report.

It also remains to be seen if the turnover in the cash segment of the NSE exceeds last year's numbers, with 19 trading days to go in the current financial year. However, the NSE recorded a 36 per cent growth in overall turnover (cash and derivatives) over the previous year because of a 49 per cent increase in the derivatives turnover year-on-year.

The NSE is promoted by India's top financial institutions — IDBI Bank, ICICI Bank, SBI, SBI Capital Markets, LIC, IL&FS, SHCIL, IFCI, Bank of Baroda, Canara Bank, GIC, National Insurance, United India Insurance, New India Assurance, Oriental Insurance, Punjab National Bank, Oriental Bank of Commerce, Indian Bank, Union Bank of India and IDFC.

The foreign shareholders include Temasek, Actis, Morgan Stanley and the Citigroup.

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