IL&FS Board Goes for Open Bidding for IL&FS Securities and IL&FS Settlement & Transaction Services
Moneylife Digital Team 13 November 2018
Debt-ridden Infrastructure Leasing & Financial Services Ltd (IL&FS) has decided to sell its stake in IL&FS Securities Services (ISSL) and in ISSL Settlement & Transaction Services (ISTSL). IL&FS said its new board of directors has decided to solicit expressions of interest (EOIs) to assess the interest for the sale.
Separately, IndusInd Bank, which has earlier agreed to buy ISSL decided to terminate the agreement citing non-fulfilment of conditions.  
The previous board of IL&FS had decided to sell ISSL to IndusInd Bank which had acquired all necessary clearances as well. However, citing non-fulfilment of certain conditions, IndusInd Bank on Tuesday decided to terminate its agreement signed in June 2018. In a regulatory filing, the lender says, "The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period. We understand that the newly constituted board of directors of IL&FS has decided to initiate a new process for the sale of its equity interests in ISSL." 
IL&FS Securities Services is a clearing member in equity and other derivatives along with ISSL Settlement & Transaction Services which provides clearing services in commodities derivatives segment. 
In a statement, IL&FS says, "The Board is cognizant that these steps are required to advance the process for putting together resolution plans for the IL&FS group, based on market interest and price discovery for various assets. Any binding transaction for the sale of assets, as well as the resulting resolution plans, will be subject to requisite approvals, including the national company law tribunal (NCLT) before the transactions are implemented."
Set up in July 2006, IL&FS Securities Services, is a capital markets intermediary for professional clearing, depository and custodial services. It services, retail and institutional clients, include over 1,000 brokers, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs).
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