NYSE and Goldman are investing in India's long- term growth while for NSE, a tie-up with NYSE would bring in technology, visibility and access to new financial products.

The government on 22 December, 2006, allowed global investors to acquire a maximum of 49 per cent in any of the nation's 22 stock exchanges. The Securities and Exchange Board of India (SEBI) has set investment limit for single investor in the bourses at five per cent.

The National Stock Exchange's daily turnover averaged Rs7,230 crore ($1.6 billion) in the past six months, more than twice the value traded on the Bombay Stock Exchange - the country's oldest bourse.

The 20-per cent stake will be acquired from current stakeholders ICICI Bank Ltd., IFCI Ltd., IL&FS Trust Company Ltd., Punjab National Bank Ltd. and General Insurance Corp. of India Ltd., the report said.

IDBI, however, said that it has not sold any of its stake in the NSE, while ICICI Bank has confirmed that it has sold five per cent of its stake for Rs530 crore.

IFCI has also confirmed of selling its seven per cent stake out of 12.44 per cent to Goldman Sachs and NYSE at Rs2,400 per share. IFCI said it intends to continue holding the remaining stake.

GIC also sold two per cent of its stake to General Atlantic at Rs2,450 per share.

NYSE has been in the forefront of mergers with $50 billion of proposed mergers in the past two years and the takeover of Euronext NV. The NYSE Group is in the process of merging the European bourse to make a global financial exchange.