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Morgan Stanley, Citi, Actis buy 6 pct in India NSE

Morgan Stanley , Citigroup  and private equity fund Actis have entered into agreements to buy 6 percent of India's National Stock Exchange (NSE) for undisclosed sums, the exchange said.

The deals will take foreign ownership of the NSE to 26 percent, the maximum allowed by Indian law, after NYSE Group Inc.  General Atlantic and Softbank Asian Infrastructure Fund paid $460 million for stakes totalling 20 percent in January.

Individual foreign holdings are limited to 5 percent.

Morgan Stanley will buy 3 percent, while Citigroup will take 2 percent and Actis 1 percent, NSE said in a statement late on Thursday.

The three firms will buy stakes held by IDBI  State Bank of India  SBI Capital Markets Ltd., Corporation Bank ), Union Bank of India , Bank of Baroda Canara Bank  and Oriental Bank of Commercethe NSE said.

Earlier this week, Singapore Exchange paid $42.7 million for a 5 percent stake in NSE's smaller rival, the Bombay Stock Exchange (BSE), following a similar deal by Deutsche Boerse  last month.

The interest in India's vibrant stock exchanges follows several consolidation attempts among the world's bourses.

Source : Reuters

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