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Crisil announced that it would be selling 49% stake in India Index Services & Products Limited (IISL), its joint venture with the National Stock Exchange (NSE).
It is set to sell 6,37, 000 shares to NSE for Rs 100 crore.
“The above stake will be sold to NSE Strategic Investment Corporation Limited for a total consideration of Rs 100 crore (Rupees one hundred crore only),” said the exchange notification.
The joint venture between Crisil, best known for its credit rating services; and the NSE — India’s largest stock exchange in terms of volumes — was struck in May 1998.
It currently provides a number of index services, maintain over 80 equity indices including broadbased benchmarket, sectoral indices and customized ones.
“Many investment and risk management products based on IISL indices have been developed in the recent past, within India and abroad. These include index based derivatives traded on NSE, Singapore Exchange (SGX) and Chicago Mercantile Exchange (CME) and a number of index funds and exchange traded funds,” according to a note on the company available on the NSE website.
S&P which had a licensing agreement with the joint venture recently tied up with the BSE to offer similar services to Asia’s oldest exchange. All of its indices now carry the S&P tag.
