George Soros is closing negotiations with Dubai Holdings to buy a 4% stake in the Bombay Stock Exchange (BSE).
Mr. Soros clearly likes the long-term growth prospects for the Indian stock market, too bad he's limited to a maximum 5% stake according to Indian rules.
Soros Fund Management is planning to pay about $40m for its stake, valuing Asia’s oldest bourse at about $1bn, said a person involved in the negotiations.
The deal is the latest in a series of strategic investments in India’s stock and derivatives exchanges, which are diversifying into new asset classes and embracing new technologies to attract so-called “high-frequency” traders.
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Mr Soros’s entry into the BSE comes amid signs of a rift between the exchange and one of its other shareholders, the Singapore Stock Exchange, which has recently given up its board seat, people close to the situation told the FT.
Moreover, while the U.S. tries to clamp down on high-frequency trading, India is opening its arms to technology.
The deal is the latest in a series of strategic investments in India’s stock and derivatives exchanges, which are diversifying into new asset classes and embracing new technologies to attract so-called “high-frequency” traders.
Just remember that there's another large competing exchange in India, the National Stock Exchange (NSE), so Soros and the BSE won't be the only game in town.
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