BUSINESS

BSE opens new chapter

NAME CHANGE: The Chairman and Chief Mentor of Infosys Technologies, N. R. Narayana Murthy, with the Chairman of Bombay Stock Exchange Ltd, S. Jambunathan, displaying the certificate of commencement of business by Bombay Stock Exchange in Mumbai on Friday.

NAME CHANGE: The Chairman and Chief Mentor of Infosys Technologies, N. R. Narayana Murthy, with the Chairman of Bombay Stock Exchange Ltd, S. Jambunathan, displaying the certificate of commencement of business by Bombay Stock Exchange in Mumbai on Friday.  

Becomes corporate entity; plans public issue shortly

MUMBAI: The Bombay Stock Exchange (BSE), an association of broker members, on Friday opened a new chapter in its history by transforming itself into a corporate entity, BSE Ltd. It is now in the process of finalising new business plans, Rajnikant Patel, Chief Executive Officer, said.

Talking to The Hindu after the commemorative function at BSE, Mr. Patel said, "Corporatisation gives opportunity to BSE to be proactive to the changed dynamics of the market and ability to respond quickly. It also allows BSE the freedom for quicker decisions and also in terms of going into the financial services space as a corporate entity, which it was not having in the earlier structure. Now we can go into new businesses. This definitely brings in more professionalism, transparency and good governance.''

The demutualisation or corporatisation of BSE was the culmination of a long interactive process between broker members, the exchange and the Securities and Exchange Board of India (SEBI). According to Mr. Patel, the BSE brokers have shown a practical and pragmatic approach to the entire process and seen that the larger interest of the investors and the market as supreme.

Set up as `The Native Share and Stock Brokers Association' in 1875, it initially operated under a banyan tree. Now the exchange has around 725 members and as on March 2005, the exchange had Rs 412 crore as reserves, which is now available for business operations. SEBI's whole-time members G. Anantharaman and Madhukar attended the commemorative function. N. Narayana Murthy of Infosys was the Chief Guest.

PTI reports:

BSE in its new avatar decided to firm up plans including diversification and appointment of a merchant banker for its Initial Public Offering (IPO).

The 131-year-old exchange, which also acquired a status of a self regulating body, would look at roping in strategic investor for expansion, diversification into related areas of financial services and increase its reach, BSE Chief Executive Ranjikant Patel told reporters here.

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