Morgan Stanley, Global financial services firm, Citigroup, one
of the largest financial services company in the world, and a
private equity firm Actis have collectively bought a 6% stake
in the National Stock Exchange (NSE) for an disclosed amount.
With this stake, the combined foreign direct investment (FDI)
in the country shoots up to 26 per cent, the limit for foreign
ownership in domestic stock exchanges.
Morgan Stanley will purchase 3 per cent in the stock exchange,
while Citigroup and Actis will be holding 2 and 1 per cent each.
Several domestic financial institutions have lined up to sell
their stakes to these three prospective investors. The list goes
like this: IDBI (2 per cent), State bank of India (1.5 per cent),
SBI Capital Markets (0.50 per cent), Corporation Bank (0.265 per
cent), Union Bank of India (0.125 per cent), Bank of Baroda (0.89
per cent), Canara Bank (0.385 per cent), and Oriental Bank of
Commerce (0.335 per cent).
Also, New York Stock Exchange (NYSE) and three other global financial
institutions, General Atlantic Goldman Sachs and Softbank Asian
Infrastructure Fund, have purchased 20 per cent in NSE. NYSE paid
a whopping amount of $115 million for its 5 per cent stake.
