FIPB to take up DSE's stake sale proposal tomorrow

The Foreign Investment Promotion Board (FIPB) will later this week consider proposals by four foreign entities to buy a total of 16 per cent stake in Delhi Stock Exchange (DSE) to ensure the bourse completes the process of selling 51 per cent brokers' stake before the August 28 deadline.

The proposals, if approved, would bring in Rs 33.92 crore of foreign direct investment into the country, sources said. Proposals by Mauritius-based entities "" Wilmette Holdings Ltd and Passport India Investments Ltd "" and Noor Financial Investment Company of Kuwait to buy 5 per cent stake each would come up at the meeting on August 17.

Another proposal by NRI Bhupendra Kumar Modi to buy 1 per cent stake would also be taken up, the sources said. Besides the FIPB nod, DSE has to seek Security and Exchange Board of India (Sebi) approval also to sell the stake to these four entities.

The DSE Board of Directors has also approved two proposals by US-based Lamb Company LLC and Kuwait Privatisation Project Holding to pick 5 per cent stake each and sent to FIPB.

Though these two proposals are not there in the FIPB meeting agenda so far, DSE officials are hoping they would be taken up as additional items since the deadline of August 28 decided by Sebi to complete the stake sale was approaching.

According to the Sebi norms, all stock exchange have to sell 51 per cent stake of broker members within a stipulated time frame. The process is called demutualisation and can also be completed by selling 26 per cent stake to those bringing FDI.

DSE has also decided to sell five per cent stake each to media house Bennett, Coleman & Company, Financial Technologies and realty firm Parsvnath Developers and sought SEBI approval.

The DSE Board is also considering proposals by some other domestic companies, including those of media house Television Eighteen and Liberty Shoes, the sources said.