Norwest Venture Partners, an investment firm, has acquired 2.11% of the National Stock Exchange (NSE) of India from IL&FS Securities Services for approximately Rs 250 crore (US$50.5 million).
Shearman & Sterling advised Norwest on international aspects while Amarchand & Mangaldas & Suresh A. Shroff & Co. represented Norwest Venture Partners as local counsel.
In October 2008 the Ministry of Finance clarified that foreign institutional investors (FII) could hold up to 23% of the equity in an Indian exchange, even where the exchange was unlisted. Norwest’s acquisition is the first investment in the NSE under the FII route.
The deal values the NSE at approximately Rs 12,000 crore (US$2.55 billion).
Hong Kong partner Paul Strecker and counsel Sidharth Bhasin led the Shearman & Sterling team.