SGX to acquire a 5 per cent stake in BSE

Mumbai, Mar 7 (UNI) The Bombay Stock Exchange (BSE) and Singapore Exchange Limited (SGX) today entered into an agreement wherein the SGX will invest in a five per cent stake in the BSE, subscribing to the shares of BSE at Rs 5,200 per share for Rs 189 crore.

Announcing this at a joint press conference here, BSE MD and CEO Mr Rajnikant Patel along with SGX CEO, Mr Hsieh Fu Hua Said,''The two exchanges have agreed to actively explore collaboration in various areas relating to listings and product development, leveraging on SGX's leading position as a regional hub for derivatives and international listings and BSE's strong presence in India.'' This strategic tie-up will offer the Asian advantage to BSE.

SGX is Asia-Pacific's first demutualised and integrated securities and derivatives exchange. They bring a huge amount of learning to this partnership. This move will also complement our association with Deutsche Borse, he said.

''We look forward to supporting BSE's goal to strengthen their international position. Together, we aim to identify new business development opportunities and foster an enduring partnership that is mutually beneficial. Our investment in BSE is consistent with our strategy of building an Asian Gateway for securities and derivatives product,''Mr Hua observed.

It is pertinent to note that the BSE, which was established in 1875, is the oldest stock exchange in India. What was earlier an Association of Persons (AOP), the Exchange is today a corporatised entity, incorporated under the provisions of the Companies Act, 1956, and presently in the process of demutualisation. It is now professionally managed under the overall direction of the Board of Directors, which includes eminent professionals and representatives of trading members.

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