The Bombay Stock Exchange (BSE), Asia's oldest stock exchange, has re-initiated the process to get listed, pursuant to the capital markets regulator Sebi's notification on 1 January that eases some of the clauses pertaining to listing of bourses.
"Earlier this month, the exchange invited three-four investment banks to initiate discussions on the IPO," Mint quoted a source familiar with the development as saying on the condition of anonymity.
"The IPO will be an offer for sale for existing investors to sell their stake, as they have been invested for over five years now," another person in the know of the development said.
BSE shareholders include Deutsche BÃ¶rse AG, Singapore Exchange Ltd, Life Insurance Corporation of India, State Bank of India, Bajaj Holdings and Investment Ltd, US billionaire George Soros's hedge fund Quantum's Mauritius investment arm Quantum (M) Ltd, Canada-based investor Thomas Caldwell's Caldwell India Holdings Inc. and US fund Argonaut Private Equity.
The BSE has been making efforts since 2012 to get listed when it hired 14 banks to advice it on the modalities. The BSE would engage the same set of firms now also for its IPO, the person, who spoke about the stake sale, said.
The Stock Exchanges and Clearing Corporations Regulations, 2012, ( or SECC Regulations), govern the listing of stock exchanges in India. The revised guidelines were notified on 1 January, 2016.
According to the SECC regulations, 51% of the equity shares in stock exchanges should be held by the public at all times, while the aggregate holding by trading members or their associates and agents should not exceed 49%.
"The trading members or their associates and agents shall obtain prior approval of the listed stock exchange for further acquisition of shares, once the aggregate shareholding of the trading members or their associates and agents crosses the limit of 45 per cent," the 1 January notification said.
The "fit and proper" clause applicable to investors was being seen as an impediment to the listing of the BSE.
In 2014-15, the BSE's revenues and net profit were Rs 624.75 crore and Rs 155.53 crore, respectively, up from Rs 529.82 crore and Rs.135.19 crore, respectively, in the previous financial year.
Multi Commodity Exchange of India is the only listed exchange in India.