BSE

1-Oct-2018: BSE commences commodity derivatives trading in Gold & Silver

History was created as BSE, Asia’s oldest exchange and now world’s fastest exchange with the speed of 6 microseconds commenced commodity derivatives trading in delivery-based futures contract in gold (1 kg) and silver (30 kg) on October 1, 2018. As part of the launch, BSE organized a bell ringing ceremony at the BSE International Convention Hall, which saw several notable dignitaries in attendance. Shri S.K. Mohanty, Whole Time Member, Sebi was the Chief Guest at the event.

The exchange will offer derivative contracts only in non-agriculture commodities initially, followed by agricultural commodities subsequently. In order to encourage more participants to join the commodity markets, BSE has decided to waive transaction charges for the first year of commodities market operations. Over the next 3-4 years, BSE plans to launch around 60 commodities on the exchange.

More than 450 members agreed to participate in the 1st phase. More than 150 members completed all formalities and were ready for trading on the very first day, on Oct 1st 2018. BSE expects more than 450 members to become active in the next 3-5 months and firmly believe BSE with its value proposition will become preferred choice going forward in the derivatives segment.

Over last few years, BSE has been ready with a robust infrastructure for delivery-based commodity trading. BSE has tied up with Indian Bullion and Jewellers Association, Gems and Jewellery Council, Cotton Association of India, Bombay Metal Exchange, Soyabean Processors Association, Federation of Indian Spice Stakeholders, etc. to assess the industry needs and develop suitable products. BSE has also associated with Brinks, Sequel, Sohanlal Commodity Management, etc. to develop a suitable delivery infrastructure in various commodities. BSE had initiated a mock trading in January 2018 to help brokers get accustomed to BSE systems.

At 6 pm, BSE had clocked turnover of Rs 36 crores in commodity derivatives segment.

About BSE: BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in delivery-based futures contract in gold (1 kg) and silver (30 kg).

BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.

Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.

16-May-2018: BSE becomes India’s first exchange to be recognized as a Designated Offshore Securities Market by the US SEC

We are pleased to announce that BSE Ltd., Asia’s first stock exchange, has received recognition as a ‘Designated Offshore Securities Market’ (DOSM) from the United States Securities and Exchange Commission (SEC) under Rule 902 (b) of Regulation S under the U.S. Securities Act of 1933. BSE, becomes the first stock exchange in India to receive DOSM recognition and now joins an elite list of foreign securities exchanges that have been recognized as DOSMs by the SEC.

The recognition by the SEC speaks about the comparability of the international regulatory framework adopted by BSE, governing its structure, organization and disclosure standards. Companies listed on BSE can feel confident of the exchange being a listing venue of choice and comparable with a handful of exchanges globally, recognized for their standards by the SEC.

Advantages of the DOSM status
In brief, the DOSM status allows sale of securities to US investors through the trading venue of BSE without registration of such securities with the US SEC and thus eases the trades by US investors in India.

Previously, equity and bond securities listed and traded on BSE and issued in the U.S., could not generally be resold in non-prearranged trades executed through the facilities of BSE’s trading platform, without requiring that the seller forms a reasonable belief that the buyer is outside the U.S. Thus, effecting such transactions with U.S. persons without any restrictions under the Securities Act, 1933 was problematic. This will now be facilitated after BSE’s recent recognition as a DOSM. The status of DOSM will provide significant advantages that can facilitate securities offerings by BSE-listed companies, particularly to U.S. investors. For instance, BSE-listed securities, originally issued in the U.S., in transactions that are exempt from SEC registration, may be freely resold on BSE.

This is expected to primarily benefit securities issued in U.S. private placements to institutional investors. The availability of a liquid resale market is expected to make exempt offerings by BSE-listed companies more attractive to U.S. investors. The recognition will also enhance the attractiveness of Indian Depository Receipts (IDRs) amongst US investors. BSE’s new status will provide additional benefits to companies whose securities are traded both in the U.S. and on BSE. Certain directors and officers of dual-listed companies will be permitted to resell their securities on BSE, regardless of any restrictions or holding periods that may apply under U.S. securities laws. Finsec Law Advisors, acted as the sole counsel for BSE in securing the DOSM status and represented BSE before the SEC.

About BSE: BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.