The United Stock Exchange of India (USE), promoted by various banks, state-run MMTC and brokerage firm Jaypee Capital Market Services, is in talks with foreign players, including some of the leading bourses, for a possible equity tie-up or getting technological support from them.
Sources close to the development said that discussions with leading bourses such as the Chicago Mercantile Exchange (CME) were underway. USE was also talking to overseas exchanges that still did not have presence in India.
When contacted, a USE spokesperson declined to comment. It was also learnt that USE was also in discussion with Asia’s oldest bourse, the Bombay Stock Exchange (BSE), and has offered equity partnership. As a domestic player, BSE can pick up a maximum 15 per cent equity in the newly-launched exchange. However, BSE has not taken any final decision on the proposal, sources said.
So far, 10 public sector banks, led by Bank of India, have picked up equity stakes in USE. The latest was Punjab National Bank, which picked up 2 per cent equity in the exchange. The exchange was promoted with an initial capital of Rs 150 crore and 49 per cent stake is with public sector, while the remaining with private sector. Public sector trading company MMTC holds 15 per cent equity. New Delhi-based Jaypee Capital is the anchor investor.
USE is in the final stage of selecting a CEO.
