BSE IPO complete by May

15 January 2007

The Bombay Stock Exchange (BSE) is set to complete its initial public offering (IPO) by May.

The Calcutta Telegraph reports the oldest bourse in Asia is looking to corporate bond and derivatives markets to encourage investors and is already in discussions with foreign exchanges for a possible partnership.

Rajnikant Patel, BSE managing director and chief executive officer, said: "The activities in our derivatives market has shown some improvement over the last five-six months with the daily turnover moving up to Rs 600 crore ($135 million) from Rs 200 crore ($45 million) earlier.

"The exchange has taken many measures to rev up this segment. Besides, we are also seriously looking at the recently launched corporate bond market… These two markets, particularly corporate bonds, are big-ticket markets and can improve the total turnover of the BSE significantly."

In India, the BSE faces significant competition from the National Stock Exchange, which has fewer firms listed on it but has higher daily derivatives turn around.

Singapore's stock exchange is also believed to be shortlisted for a five per cent stake in the BSE, along with other possible bidders including Deutsche Boerse, Nasdaq and the London Stock Exchange.

NYSE bought a five per cent stake in NSE for $115 million last year.

India's Over the Counter Exchange of India is also attracting foreign interest, from London's Alternative Investment Market (AIM) and the Shanghai and Korean bourses, reports the Business Standard.

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