Country's premier stock exchange Bombay Stock Exchange (BSE) today said it had set up a committee to process its proposed initial public offering (IPO). The exchange said that it may list during the next calendar year.
Ashishkumar Chauhan, interim Chief Executive Officer, BSE Limited, said: “We are working on the process to get listed in the Indian stock exchanges. We have set up an IPO committee and we are in the process and we hope to get listed in the first or second quarter of calender year 2013."
He said the exchange is in the process of preparing Draft Red herring prospectus (DRHP) and waiting for certain regulations to get listed, said Chauhan.
“We are a cash-rich exchange and wants to give our investors an exit route and IPO would be best option for them,” he added.
Currently broking houses hold around 43% in BSE, followed by FIIs with 39% and FIs and retail will hold the remaining in the exchange.
As per SEBI's rules, we need to dilute up to 25% as per current regulations and the exchange will work out with the existing investors on how to go ahead with this, said Chauhan.
“We want to capitalise on the first QFI investments, a US-based QFI had invested a good amount for equities. We need to attract such investments in a big way. We are facilitating our broking houses to attract such investments in a big way. And towards this, a broking house will set up its office at Dubai and expect to go on stream in September early”.
On the launch of BSE 100 index, he said, it has become a major success and helps broking houses saving a whopping of around Rs 1,200 crore every year. It is so attractive that the daily volume has gone up to Rs 35,000 crore to Rs 45,000 crore a day and has gained a market share of over 35%, he added.
Commenting about BSE's cost competitiveness in the futures and options segment, he said BSE charges Rs 50 for every Rs 1 crore transacted, which is 85% lower than other exchanges. The exchange does not charge any transaction cost for futures, resulting in transaction cost on futures being lower by 22%, he said.
