Jalan panel report leaves BSE gasping
17 Dec 2010
Buyers for Bombay Stock Exchange shares have vanished due to uncertainty over its listing plans in the wake of the Bimal Jalan Committee proposal disallowing listing of stock exchanges.
The shares of BSE are currently available at Rs290-300, nearly 20 per cent lower than the price at which the last deal was done, said two brokers tracking the stock.
At these prices, the exchange is now worth $700 million. Reportedly, there have been no trades in BSE shares since the report was released.
The mood is similarly downbeat in the smaller bourses. Shares of regional stock exchanges (RSEs) are falling out of favour, with the Jalan panel proposing to deny listing and cap their profits.
Regional SEs in Ahmedabad, Vadodara, Bangalore and Pune saw the value of their shares dip by 20-30 per cent. The exchanges are not listed and share transactions take place in off-market deals.
A seven-member committee headed by former Reserve Bank of India governor Bimal Jalan last month suggested exchanges should not be allowed to list, and a ceiling should be put on profits and dividends. Securities and Exchange Board of India chairman C B Bhave seconded the suggestions, which investors.
BSE board set to oppose Jalan
The BSE board members are preparing to oppose the suggestions of the Jalan committee.
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