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| CDSL to move out of BSE building |
| BS Reporter / Mumbai Mar 11, 2010, 00:57 IST |
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Central Depository Services Ltd (CDSL) is ready to move out of Jeejeebhoy Towers, the Bombay Stock Exchange (BSE) headquarters, to a new location in central Mumbai.
Talking to Business Standard, a top CDSL official said: “We have purchased a 45,000 sq ft office at Ruby Mill compound in Dadar as we are expanding operations in a big way. We realised that the 14,000 sq ft space in the BSE building was small.”
While CDSL has also cited security issues and vehicle parking problems for its decision to shift base, sources within the depository said the company was having differences with the exchange over various issues.
The BSE, which is the original promoter of CDSL, is in the process of increasing its stake in the depository to 51 per cent from the current 36.5 per cent.
The move, according to informed sources, has been opposed by one of the board members of CDSL, who has argued that the depository will lose its independence if BSE buys a controlling stake.
BSE earns around Rs 10-12 crore in rentals and maintenance charges from tenants annually, including Rs 2.5 crore from CDSL.
While BSE officials declined to comment, a board member said BSE’s board had already given its consent for increasing its stake in CDSL.
“It will increase its stake in the depository once regulatory procedures are completed.”
Apart from BSE, other sponsors of CDSL include Bank of India, State Bank of India, HDFC Bank, Union Bank and Bank of Baroda. According to sources, HDFC Bank, with a stake of 14.3 per cent, plans to sell its stake to BSE.
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