Note on Boi Shareholding Limited

Note on Boi Shareholding Limited

BOI SHAREHOLDING LIMITED

Clearing House of the Stock Exchange, Mumbai (BSE Ltd.)

Member Report

Constitution:

BOI Shareholding Limited (BOISL) a subsidiary of the Bank, was established in the year 1989. BOI Shareholding Limited is a Joint Venture Enterprise between Bank of India (BOI) and BSE Ltd. (BSE). Bank of India holds 51% stake and BSE holds 49% stake out of a capital base of Rs. 2 crore, in the Company.

Board of Directors:

The Company has 8 Directors on its Board. The Board of Directors, 4 each from Bank of India & BSE Ltd., are eminent bankers / highly qualified, professionals. List of the present Directors are as under:

  1. Shri T. S. Narayanasami:Chairman & Managing Director,

Bank of India

  1. Shri K. R. Kamath :Executive Director, Bank of India
  1. Shri Rajnikant Patel:Managing Director & CEO, BSE Ltd.
  1. Shri Siddarth J. Shah:Director, BSE Ltd.
  1. Shri V. K. R. Agrawal:General Manager, Bank of India
  1. Shri Prakash Kacholia:Director, BSE Ltd.
  1. Shri Ashok Kumar Rout:Chief Operating Officer, BSE Ltd.
  1. Shri A. C. Gautam:Managing Director, BOISL,

on deputation from Bank of India

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Facilities provided by BOISL

The operations of the Company can be segregated in their major segments i.e.

i)Clearing & Settlement Operations of the Exchange

ii)Depository Services

iii)Franking Operations (Government Business).

The detailed activities are given here under:

  • Providing timely settlement of securities & money to the Clearing Members of the Exchange.
  • Demat services to Clearing Members / Clients under NSDL & CDSL Depositories.
  • Providing Auto DO & Direct Payout to Clients facility to the Clearing Members as additional services.
  • Custodian of BSE for BMC & AC Collateral in both Cash & Derivatives Segment.
  • Licensed by Government of Maharashtra (GOM) to frank stamp duty documents.
  • Licensed by GOM for sale of Judicial & Non-Judicial Stamp papers.
  • License by GOM for franking of “Share Transfer Deed” documents.
  • License by GOM for collection of BSE & NSE turnover stamp duty documents.

Regulators:

(i) Clearing House Operations-Securities Exchange Board of India

(SEBI) & BSE Ltd.

(ii) Depository Participant (DP) -SEBI, NSDL & CDSL

(iii) Franking -Government of Maharashtra

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Landmarks achieved by BOISL

  • Timely compliance of SEBI guidelines for adopting the Rolling Settlement from Physical Segment.
  • Smooth migration from weekly physical settlement to Rolling Settlement (T + 2).
  • The first ClearingHouse in India to achieve ISO 9001:2000 certification.
  • One of the first to obtain license for Franking Stamp Duty from GOM.
  • Sole license for franking of “Share Transfer Deed” documents by GOM.
  • Sole license for collection of “BSE & NSE Turnover Stamp duty” by GOM.
  • The Company has declared 100%dividend for the financial year 2006-2007.

New Challenges

  • Fully geared to adopt the change of settlement cycle from T + 2 to T + 1.
  • Ready to launch Securities Lending & Borrowing Scheme of SEBI as an Approved Intermediary.
  • To facilitate Clearing and Settlement of Corporate Debts.
Recent Developments

As per the “The BSE (Corporatisation and Demutualised) Scheme 2005”, the Exchange has been corporatised w.e.f. 20.08.2005 and further demutualised on 19.05.2007, whereby Clearing Members stake has been reduced to 49%. Now 51% stake is held by foreign and Indian Institutions. SEBI, the Market Regulator, has since directed to covert Clearing House of the Exchange into a Clearing Corporation. Accordingly, BSE Ltd is in process of converting its Clearing House into a Clearing Corporation in near future.

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