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DSE May Sell Stake To Vernon & Park Capital, Dunbay

16 March, 2009

India’s oldest stock exchange, the Delhi Stock Exchange is planning to restart its operations in the next three months, The Economic Times reports. US-based private equity firm Vernon & Park Capital and Cyprus-based Dunbay are picking up a 5% stake in the firm. While Vernon & Park Capital will pick up a 3% stake, existing shareholder Dunbay may pick up anywhere between 1-3% stake.

The stock exchange has stopped trading 7 years back, in 2002. The 61 year old exchange is planning to start trading by June. The exchange is aiming at a daily trading turnover of Rs 1,000 crore in its first year of operation.

It is now in talks with the with global index provider Standard & Poor’s among others for developing a primary index for them on the lines of Sensex and Nifty50. Foreign stake holders, other than S&P, who hold a 20% stake in the exchange, are also in discussions with others for the index creation and maintenance. DSE is currently in discussions with the private equity firm, Vernon and Park Capital for the ‘market maker’ position.

The bank also plans to start futures & options trading within three years of beginning operations. It is also looking at the inter-linking of regional exchanges and for the same it had held a meeting on

Saturday with the Regional Stock Exchanges (RSEs) in New Delhi.

The rights to provide business development and technology transfer for the exchange have been given to Financial Technologies India Ltd (FTIL). It is also a business partner to the stock exchange and holds a 5% stake in the bourse.

Deutsche Bank AG, which has earlier indicated interest in buying 5% stake in the exchange Rs 13.47 crore, has now shelved its plans. Other private stake holders in the exchange include Parsvnath Developers, Omaxe & NDTV. Each of them own a 5% stake in the DSE.

More than 3000 companies are listed on DSE, out of which 1800 are exclusive to it. Apart from Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), there are 19 RSEs in the country. However, currently only Kolkata and Kanpur exchanges are operations.


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DSE May Sell Stake To Vernon & Park Capital, Dunbay

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