Demutualisation of the BSE is expected to fetch the income-tax department a Rs 200-crore windfall in long-term capital gains tax (LTCG). Member-brokers of the BSE, who will tender their shares in the offer for sale by the exchange, are expected to attract LTCG at the rate of around 33 per cent on the consideration they receive by way of share transfer.

Assuming half of BSE’s 750-odd members tender 50 per cent of their total holdings (of 10,000 shares) at the rate of Rs 5,200 a share, as stated in the offer, each member may have to shell out around Rs 50-60 lakh as LTCG before adjustments.

BSE invited bids from shareholders (member-brokers) to participate in the offer for sale as a part of its endeavour to shore up public shareholding to 51 per cent of its total equity. The offer for acquiring 46.57 lakh shares, which opened on February 28, closes on March 9. According to informed sources, the offer has received encouraging response from the member-brokers and more than 300 are expected to tender half their holdings in the offer. (FE)