http://economictimes.indiatimes.com...oard-likely-to-resign/articleshow/5691847.cms
SGX’s member on BSE board likely to resign
Wai Kwong Seck, senior vice-president and chief financial officer, Singapore Exchange’s (SGX), is likely to resign from the BSE board. This has triggered speculation about the status of SGX’s tie-up with India’s number two stock exchange. SGX is one of the two strategic investors — the other one being Deutsche Borse — in BSE, with a 5% stake.
Should SGX surrender its board seat, it would send out an unmistakeable signal that the exchange is not interested in continuing its tie-up with BSE for long, say market watchers. BSE officials were not available for comment, while an SGX official declined to comment on the issue.
The development needs to be seen in the context of the memorandum of understanding (MoU) that SGX signed with the National Stock Exchange (NSE), “to explore future collaboration in the expansion, development and promotion of India-linked products and services to be listed on SGX”. NSE has a tie-up with SGX since 2000 wherein S&P CNX Nifty futures are traded on the Singapore bourse.
SGX had paid Rs 189 crore for a 5% stake in BSE at Rs 5,200 per share (ex-bonus Rs 433) in March 2007 during the demutualisation programme of the Indian bourse, which was transforming itself from a broker-controlled exchange into a corporate entity. BSE was supposed to come out with an initial public offering (IPO) the following year.
That has not happened till date, largely because norms on self listing of stock exchanges are yet to be defined. While the exact price is not available, BSE shares are said to be quoting at least 15-20% below the rate at which they were offered to strategic investors in 2007.
SGX’s member on BSE board likely to resign
Wai Kwong Seck, senior vice-president and chief financial officer, Singapore Exchange’s (SGX), is likely to resign from the BSE board. This has triggered speculation about the status of SGX’s tie-up with India’s number two stock exchange. SGX is one of the two strategic investors — the other one being Deutsche Borse — in BSE, with a 5% stake.
Should SGX surrender its board seat, it would send out an unmistakeable signal that the exchange is not interested in continuing its tie-up with BSE for long, say market watchers. BSE officials were not available for comment, while an SGX official declined to comment on the issue.
The development needs to be seen in the context of the memorandum of understanding (MoU) that SGX signed with the National Stock Exchange (NSE), “to explore future collaboration in the expansion, development and promotion of India-linked products and services to be listed on SGX”. NSE has a tie-up with SGX since 2000 wherein S&P CNX Nifty futures are traded on the Singapore bourse.
SGX had paid Rs 189 crore for a 5% stake in BSE at Rs 5,200 per share (ex-bonus Rs 433) in March 2007 during the demutualisation programme of the Indian bourse, which was transforming itself from a broker-controlled exchange into a corporate entity. BSE was supposed to come out with an initial public offering (IPO) the following year.
That has not happened till date, largely because norms on self listing of stock exchanges are yet to be defined. While the exact price is not available, BSE shares are said to be quoting at least 15-20% below the rate at which they were offered to strategic investors in 2007.
