A group of nine investors, including Tiger Global and SAIF Partners, have opposed National Stock Exchange's business restructuring plan saying the move would delay the bourse’s listing and result in loss in shareholders’ value.
These investors-who together hold nearly 20 per cent stake-have also asked the exchange to move an in-principle application before Sebi for listing itself. Under the proposed rejig, NSE plans to create a separate entity for non-regulated business and the move comes on the heels of markets regulator Sebi approving new listing norms for stock exchanges.
In a letter written to NSE chairman SB Mathur, the investors have expressed “multiple concerns on this such as further delay in listing of the Company, potential tax liabilities and loss in shareholder value due to restructuring.”
Copies of the letter have also been sent to NSE CEO Chitra Ramakrishna, its board of directors and shareholders. Apart from Tiger Global and SAIF Partners, other investors who have voiced their opposition are Norwest Venture Partners, Aranda Investments, Beacon India Private Equity Fund, DVI Fund, GTI Capital Epsilon, NewQuest Asia Investment and WCP Holdings. They have 19.62 per cent stake in NSE.
The restructuring plan is aimed at transferring ownership of its unregulated businesses like CAMS, Dotex, IISl and others to a new group company. These businesses are currently directly held by the exchange business and therefore regulated and monitored by Sebi.
Under the proposed restructuring these businesses would become subsidiaries of a new holding company, which would also own the exchange business (as a separate subsidiary).