The Hindu Business Line : SEBI seeks details on BgSE arm's reverse merger

THE Securities and Exchange Board of India (SEBI) has sought `certain clarifications on legal issues' on the proposed reverse merger of the subsidiary, BgSE Financials, with the parent stock exchange, the Bangalore Stock Exchange Director, Ms K. Kamala, has said.

Declining to detail the timeframe for SEBI's approval, Ms Kamala said the bourse also planned to appoint one of the ``top five'' consultants to advise on the reverse merger following SEBI's approval.

Meanwhile, the BgSE has approached SEBI for necessary clarification to get itself registered as an approved intermediary for Securities Lending and Borrowing Mechanism (SLBM). The exchange is currently in talks with financial institutions and banks to fund its future growth plans.

The BgSE plans to act as a clearing member of the NSE for derivative trading and subsequently handle clearing operations for external agents nationally. SEBI has permitted the exchange's subsidiary, BgSE Financials, to acquire derivative segment membership.

BgSE Financials reported a turnover of Rs 6,926.74 crore on the NSE as on end-March 2001 and Rs 225.46 crore on the BSE.

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