10 August 2008

Post Script to BSE story

Today's Financial Express has a story on Deutsche Boerse and Singapore Exchange being invited to the Board of BSE. This will hardly have any effect unless, they are a) handed over the reigns with a substantive technical collaboration b) SEBI wakes up and allows them singly or jointly to own more than say 26 or 50 %, so that they have ownership to carry out the reforms - a 5% owner can only do charity not real managment revamp. This will also require coordination with the government's investment policy which mirror's SEBI's regulations of the 5% cap. See yesterday's blog for full details.
PS: I may add that Deutsche Boerse was interested in picking up a stake in BSE nearly two years back. Then the policy of divestment was not clear. Subsequently, when SEBI came out with the SEBI (MIMPSRSE) Regulations 2006 in November 2006, they nearly walked away from the deal. It was only the intervention of an unnamed benefactor of BSE who spoke to Deutsche Boerse then, arguing that the limit was not for all times to come, and they should keep a foothold in the Indian bourse, that DB was convinced and invested.

1 comment:

Anonymous said...

Read your comments. It was quite interesting and agree with your perspective. The only thing I want to point out is one must try to cure the person when he is alive and not after he is dead. It will be too late then.