INSUBCONTINENT EXCLUSIVE:
Mumbai: The National Stock Exchange (NSE) could get some relief from the capital market regulator on the decision to sell its stake in
Computer Age Management Systems (CAMS) within a year, said two people with the direct knowledge of the development.
The Securities and
Exchange Board of India (Sebi) is said to have asked NSE to submit a proposal detailing the roadmap for the sale of its 37 per cent stake in
CAMS after the exchange sought more time to comply with the order.
The regulator has agreed to soften its stance because the mutual fund
This would make it difficult for NSE to divest its stake in time.
Emails sent to Sebi and NSE remained unanswered.
NSE currently owns a
little over 37 per cent stake in CAMS through one of its subsidiaries, NSE Investments Limited (NSEIL).
The development could impact the
upcoming IPO plans of CAMS which filed the draft prospectus with Sebi last month, people cited above said.
ET had reported on February 12
that in a letter dated February 4, Sebi observed that NSE failed to obtain prior regulatory approval while buying a stake in CAMS during
FY13-14 and the investment was in violation of the rules for market intermediary institutions.
CAMS is the largest share registrar and
transfer agent in the Indian markets with a market share of more than 60 per cent in several segments
The company is promoted by global private equity fund Warburg Pincus and has several marquee institutions, including HDFC Bank and Faering
Capital, as shareholders.
As per the offer document, existing shareholders are planning to sell 1.2 crore shares of CAMS through the
offering, of which around 60 lakh shares would come from NSE while Warburg Pincus will offload up to 40 lakh shares.
The rest of the shares
would be offloaded by other investors
To comply with the Sebi order, NSE will have to sell the entire 1.8 crore shares it currently owns.
