Nasdaq holds talks with BSE; stake sale may be on

MUMBAI: Nasdaq officials on Tuesday met their counterparts in the Bombay Stock Exchange (BSE), a development that has drummed up speculation about the tech-heavy US exchange picking up a stake in Asia’s oldest bourse.

Robert Greifeld, CEO of Nasdaq appeared quite positive towards a tie-up, but refused to go into the details as further regulatory guidelines on the divestment of BSE’s equity are awaited.

“We are interested in participating in the global consolidation. We are interested in forming strategic partnerships in the region where there are synergies in the business model,” Greifeld said.

When asked what percentage stake would the Nasdaq pick up in the BSE, Greifeld declined to comment saying, “ I wish I could tell you, but I cannot.”

As per Sebi guidelines on demutualisation, BSE, in early July this year, had announced that it would divest 51% stake.

BSE had also made it clear that 26% of the stake would be sold to strategic investors and the remaining 25% through an IPO.

The stock exchange’s CEO, Rajnikant Patel, had then said that if things go right, the exchange would complete the process by the current year-end.  Being a financial institution, BSE can have a foreign partner with 26% stake as per Reserve Bank of India norms.

BSE has appointed Kotak Mahindra Capital Company as its financial advisor for the corporatisation and demutualisation processes. 

Nasdaq currently has seven Indian companies listed on it excluding the latest applicant EXL Service, which filed S1 document on last July 28, 2006.

Nasdaq feels that there are more than 100 US GAAP-compliant Indian companies that could make an entry into the exchange.