| | Consolidation of DSE and BSE A proposal is being put up by The Stock Exchange, Mumbai (BSE) and The Delhi Stock Exchange Association Ltd. (DSE) to their respective Governing Boards for consolidation of DSE and BSE. The salient features of the proposal are detailed below: - An independent valuer of repute would be jointly appointed by the BSE and the DSE to carry out a due diligence and a valuation to arrive at the networth of DSE.
- BSE would buy 100% of the equity of DSE.
- Consequent to the demutualisation of BSE, the members of the DSE would be offered trading membership as per the eligibility under the BSE bye-laws, rules and regulations at a concessional rate on surrender of their membership of the DSE. The value of the concession would be arrived at after ascertaining the networth of DSE and apportioning it equally among the members of the DSE. In addition, there may be a discount to the normal membership price that BSE would be charging for fresh trading membership.
- The BSE would put in place a Permitted Securities Segment to commence trading in respect of securities of companies listed on the DSE but not listed on the BSE.
The consolidation proposal, if approved, by the Governing Board of both the Exchanges is subject to ratification by members of both the Exchanges. The proposal would also require necessary regulatory approvals from Securities and Exchange Board of India. A Memorandum of Understanding will be signed after receiving the requisite approvals.
On implementation of this proposal, DSE would automatically get demutualised.
The BSE and the DSE will be working jointly into ensuring that this process of consolidation works in the overall interest of the investors of the Indian Capital Market. | Mr. Sudhir Joshi | | Dr. Manoj Vaish | | President | | Deputy Executive Director | | Delhi Stock Exchange | | The Stock Exchange, Mumbai (BSE) | | | | September 12, 2001 |
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