BSE Making Way With Inflation Slipping to Single Digit

Inflation came as a pleasant surprise, slipping into the single digit at 8.98% for the week ended 1st Nov 08'
Looks like BSE is all set to get itself listed in its own exchange! It has been contemplating getting listed for quite some ti e now but was trapped so much in its own internal politics that it probably never had the time and energy to look beyond. And now looks like, the eagerly awaited listing will finally happen.

Like all companies listed on the BSE, before they go public, they dole out largess to the existing shareholders so that can reap the maximum moolah when the company gets listed. Issuing hefty dividends and bonus shares is always a prelude to the listing process. And that is precisely what BSE has done. Apart from giving out a 3000% dividend in 2007-08, its shareholders have also been blessed with an equally huge bonus. It is offering 12 bonus shares for very share held by shareholders. This was a much anticipated move as the bonus issue would raise the BSE’s equity capital from the current Rs.78 lakh to Rs.10 crore, which is the limit applicable to companies seeking listing on the National Stock Exchange (NSE). The minimum paid-up capital requirement for BSE listing is Rs 3 crore.


BSE had chalked out a road map for listing in FY08 but that did not happen. FY09 might be the year, what with the BSE now fulfilling all the required criteria for listing. There is a probability that the BSE might get itself listed without an IPO as it has no real requirement for funds right now. It may seek an exemption from SEBI from floating an IPO. Also given the current market conditions, maybe it might not be such a good idea to float an IPO. On the other hand, maybe an IPO from BSE would actually help revive the dormant IPO market and bring back some life. It would indeed a new chapter in the history of BSE and trading for the investors when an exchange gets listed like a corporate and people trade on it.
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