Mumbai: The Bombay Stock Exchange has asked market regulator SEBI for a one-year extension to dilute its broker members' stake from 100 per cent to 49 per cent.
BSE brokers wanting to trade their BSE shares will have to wait. That's because the exchange recently asked SEBI for a one-year extension to dilute its broker shareholding from 100 per cent to 49 per cent.
There are two reasons for the delay. First, regulator SEBI has still not clarified and framed rules on how the BSE can dilute the stake and second, the BSE has not been able to arrive at a concrete plan on how it will dilute the stake.
BSE CEO Rajnikant Patel could not be reached for a comment. Until the details of the dilution are sorted out, broker members will simply have to wait. They cannot even transfer rights.
Earlier last month, at the behest of SEBI, BSE issued a circular to its members barring them from transferring BSE shares until the dilution norms were in place. At the time a Rs 1 BSE share was quoted at Rs 1,500 and about 3 per cent of the 75 lakh shares had already been transferred.
The extension is a set back for many BSE members who have been waiting to trade their BSE shares. It's almost a year since SEBI cleared BSE's demutualisation proposal and still there is no clear direction on how and when the exchange will rework its shareholding pattern.
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