SUUTI sells 9.42 per cent stake in NSDL to NSE
08 Mar 2010
Mumbai: ICICI Securities Ltd today said that the Specified Undertaking of The Unit Trust of India (SUUTI) has sold 9.42 per cent of its 25 per cent equity stake in National Securities Depository Limited (NSDL) to The National Stock Exchange (NSE). I-Sec acted as the sole advisor to SUUTI for the transaction.
With the stake sale, NSE's shareholding in NSDL has gone up from 15.63 per cent to 25.05 per cent.
ICICI Securities said SUUTI does not propose to sell further equity stake in NSDL to NSE.
IDBI continues to be the largest sponsor of NSDL with 30 per cent equity stake.
The crash of the Indian stock markets in 2001 folowing the Ketan Parekh scam, doubts were created about UTI's capacity to meet its obligations to the investors of its flagship Unit Sheme 64. Units in US 64 were sold and re-purchased at an artificial price instead of the scheme's NAV.
To prempt panic withdrawalas causing a run on UTI, the central overnment devised a rescue package that involved the repeal of the UTI Act and bifurcation of the Unit Trust of India.