Shareholders of Bombay Stock Exchange approved a bonus issue of 12:1 at an extraordinary general meeting held in Mumbai on Friday. The face value of the BSE share is Re 1.
The bonus issue was proposed to increase the capital base of BSE so as to make it easier for the bourse's listing, say market players. A formal request for expediting the process for listing of BSE shares was made at the exchange's last annual general meeting.
BSE's capital base as of now stands at Rs 78.74 lakh (Rs 7.9 million), which will increase to Rs 10 crore post-bonus. A capital base of Rs 10 crore (Rs 100 milliion) is the minimum requirement for companies to be listed on the National Stock Exchange. The minimum paid-up capital requirement for BSE listing is Rs 3 crore (Rs 30 million).
The EGM has also approved a resolution to allow BSE to allot equity shares on a preferential basis to Deutsche Borse AG and Singapore Stock Exchange to top up their holding up to 5 per cent of its equity capital. This is in view of the exchange having kept in abeyance allotment of equity shares to 25 trading members on account of suspension of their membership rights.
Sources say BSE is looking to list shares with or without an initial public offer.
