IFCI, IL

Mumbai, Jan 10: Pursuant to the FDI Policy announced by the Government of India in respect of Foreign Direct Investment in the Indian stock exchanges, five Indian Institutions - IFCI, IL&FS, ICICI, PNB and GIC have entered into an agreement with a global stock exchange and three financial institutions to sell part of their holdings in the National Stock Exchange (NSE).

The NYSE Group, General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund will each acquire five per cent stake in the NSE from the above domestic Institutions.

NSE Managing Director&Chief Executive Officer said that ''We are pleased to welcome the NYSE Group and other new stakeholders in NSE. In a rapidly integrating world of financial markets, this timely partnership brings together the strengths of institutions from North America, Europe and Asia. This alliance marks a significant milestone for NSE in developing a place for itself in the emerging global scenario.

The global financial investors are amongst the most pedigreed institutions in the world, and will contribute to building value in the NSE.'' NYSE Group has a market capitalization of more than USD 15 billion. The operating companies listed on its New York Stock Exchange and NYSE Arca subsidiaries represent a total global market capitalization of USD 23 trillion. NYSE Group is in the process of merging with Euronext N V, to create the first truly global financial exchange group. Its proposed investment in the NSE is therefore of significant strategic importance for the Indian stock exchanges and capital markets.

General Atlantic is a leading global private equity firm with USD 12 billion of capital under management. General Atlantic has extensive experience in the financial services industry and is one of the first global private equity firms to invest in India.

Current investments among 50 portfolio companies globally include NYSE Group, NYMEX, Genpact and Patni.

Goldman Sachs is a leading investment bank globally and is a committed partner, leading advisor and practitioner to many of the world's major exchanges. As a stakeholder in the NSE and through its leading experience with exchanges, Goldman Sachs will be an important strategic partner and will contribute to NSE's continued success.

Softbank Asian Infrastructure Fund (SAIF) is a leading Asian private equity firm with over 60 portfolio companies in the region.

SAIF Partners will bring its extensive network of Indian as well as international relationships in the financial services sector to the advantage of NSE.

UNI