Drishtikone
Bombat Stock Exchange is selling some stake to Singapore Stock Exchange now.. it just sold 5% to Deutsche Borse recently! So the Indian exchanges are hot. The question is: Is that a good thing for India as a whole? Should stock exchanges of a country be in the hands of the stock exchanges of other countries? Will there be a monopoly of certain exchanges in the world? What will that mean for the concentration of wealth in the world?
Interesting questions which I will try and explore after reading a bit more on the subject.
Inflation fears and volatility are not dampening the expansion plans of stock exchanges in India.
The Bombay Stock Exchange sold a 5 percent stake Wednesday to the Singapore Stock Exchange for 1.89 billion India rupees, or $42.6 million, and the exchange in Calcutta said it planned to sell 51 percent of its shares to partners and strategic investors in roughly 5 percent increments.
The Bombay exchange said it would collaborate with Singapore on listings and new products, planning to capitalize on Singapore’s position as a regional hub for derivatives and international listings.
“This alliance will position B.S.E. to be an important player in the increasingly globalized marketplace,” said the managing director and chief executive of the Bombay exchange, Rajnikant Patel.
The Singapore deal comes after the Bombay Stock Exchange sold another 5 percent stake to Deutsche Börse earlier this year, and the National Stock Exchange of India sold a 20 percent stake to investors, including the New York Stock Exchange. The diversification comes as some economists and strategists warn that Indian stock prices are in danger of becoming a bubble.
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