Financial Institutions looking up to: Morgan Stanley, Citi, Actis

Morgan Stanley, Global financial services firm, Citigroup, one
of the largest financial services company in the world, and a private
equity firm Actis have collectively bought a 6% stake in the National
Stock Exchange (NSE) for an disclosed amount. With this stake, the
combined foreign direct investment (FDI) in the country shoots up
to 26 per cent, the limit for foreign ownership in domestic stock
exchanges.

Morgan Stanley will purchase 3 per cent in the stock exchange,
while Citigroup and Actis will be holding 2 and 1 per cent each.

Several domestic financial institutions have lined up to sell their
stakes to these three prospective investors. The list goes like
this: IDBI (2 per cent), State bank of India (1.5 per cent), SBI
Capital Markets (0.50 per cent), Corporation Bank (0.265 per cent),
Union Bank of India (0.125 per cent), Bank of Baroda (0.89 per cent),
Canara Bank (0.385 per cent), and Oriental Bank of Commerce (0.335
per cent).

Also, New York Stock Exchange (NYSE) and three other global financial
institutions, General Atlantic Goldman Sachs and Softbank Asian
Infrastructure Fund, have purchased 20 per cent in NSE. NYSE paid
a whopping amount of $115 million for its 5 per cent stake.