M A I N   N E W S

NSE GAINS
Enter: NYSE, Goldman Sachs

New Delhi, January 10
Marking the opening up of the Indian stock exchanges to foreign investment, the world's largest stock exchange — New York Stock Exchange — today entered India by inking a deal to pick up a 20 per cent stake in the National Stock Exchange along with Goldman Sachs and two other private equity funds for $490 million.

The agreement signed today pegs the enterprise value of the country's largest bourse at about $2.5 billion.

Officials of Punjab National Bank, IL&FS, ICICI, IFCI and GIC, which divested part of their holdings in the NSE, initialled the share purchase agreements with the global buyers, including the US-based General Atlantic and Softbank Asian Infrastructure Fund of Hong Kong.

IL&FS and ICICI are divesting 5 per cent each while the IFCI is offloading 7 per cent. Besides, GIC and PNB are selling 2 per cent and 1 per cent equity, respectively.

The four foreign investors would pick up 5 per cent stake each in the exchange.

The NSE stake sale comes within a month of the government decision allowing FDI and portfolio investment in the stock exchanges.

The RBI has allowed foreign investment up to 49 per cent in stock exchanges, fixing the FDI cap at 26 per cent and the FII limit at 23 per cent. SEBI has stipulated the investment limit for a single foreign investor at 5 per cent. — PTI