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BSE to sell 4% stake in CDSL through OFS mechanism

Nov 28, 2019, 14:07 IST
PTI
New Delhi, Nov 28 () Leading stock exchange BSE, the promoter of Central Depository Services Ltd (CDSL), will offload 4 per cent stake in the company.

The exchange will sell 41.8 lakh equity shares, representing 4 per cent of its stake in CDSL through offer for sale route, according to information available with the NSE.

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The stake-sale is being conducted on the NSE on Thursday for institutional investors and on Friday for retail investors.

At the end of September quarter, the BSE owned 24 per cent stake in CDSL. While banks and financial institutions' shareholding stood at 22.42 per cent, mutual funds held 9.54 per cent and FPIs owned 1.78 per cent stake in the company.

CDSL's stock is currently trading at Rs 221.70 on the NSE, down 0.72 per cent from the previous close.

CDSL, which allows investors to deposit securities by opening an account in electronic form (dematerialised), gets its revenues from transaction charges, account maintenance charges and settlement charges paid by depository participants as well as annual fees, corporate action and e-voting charges paid by companies whose securities are admitted in the depository's systems.

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"The seller (BSE) proposes to sell up to 41,80,000 lakh shares of face value Rs 10 each representing 4 per cent of the total paid-up equity shares of the company on November 28 (for non-retail investors only) and on November 29 (for retail investors and for non-retail investors who choose to carry forward their unallotted bids),"as per the notice.

CDSL got listed on the exchange in 2017. Through the IPO, the BSE, which had 50.05 per cent stake in CDSL, sold 26.05 per cent of its holding, to meet markets regulator Sebi norms.

Under Sebi regulations, a stock exchange cannot have more than 24 per cent stake in a depository.

SP ANU ANU

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