Bombay Stock Exchange Current Affairs - 2019
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India’s leading bourse Bombay Stock Exchange (BSE) became first stock exchange in the country to launch commodity derivative contracts. It has launched contracts in popular commodities like gold (1kg) and silver (30kg). This launch comes after unified exchange regime kicked off from 1 October 2018.
The launch of commodity derivatives platform on BSE will help efficient price discovery, reduce timelines and make it cost effective. BSE also has applied for launching of crude oil and copper commodity contracts with capital markets regulator Securities and Exchange Board of India (SEBI). Subsequently, it is also planning to launch more agri commodities
So far, commodity contracts were only available on commodity exchanges like MCX and NCDEX, the two specialised commodity derivatives exchanges in the country. Recently SEBI had allowed India’s top two stock exchanges BSE and NSE to launch commodity derivatives trading under unified exchange regime wherein stock exchanges will be allowed to offer trading in commodities derivatives.
About Bombay Stock Exchange (BSE)
BSE is the oldest stock exchange in Asia formed by eight native stock brokers association in 1875 located at Dala street, Mumbai. It had received temporary approval from Bombay government in 1927 and permanent approval by Indian Government on 31 Aug 1957. Today it is 10th largest stock market in the world by market capitalization at $1.7 trillion and has more than 5,000 companies listed in it. Its iconic building named Phiroze Jeejeebhoy Towers Dalal Street in Mumbai, Maharashtra has received image trademark under Trade Marks Act, 1999.
BSE Ltd (earlier known as Bombay Stock Exchange) became first Indian exchange to be designated as Designated Offshore Securities Market (DOSM) by United States Securities and Exchange Commission (US-SEC).
DOSM status will allow sale of securities to US investors through trading venue of BSE without registration of such securities with US SEC. This will ease trades by US investors in India and also enhance attractiveness of Indian Depository Receipts (IDRs) amongst US investors.
The new status is also expected to primarily benefit securities issued in US private placements to institutional investors. Moreover, it will provide liquid resale market which will exempt offerings by BSE-listed companies, making them more attractive to US investors.
DOSM status will also provide additional benefits to companies whose securities are traded both in US and on BSE. It will allow certain directors and officers of dual-listed companies to resell their securities on BSE, regardless of any restrictions or holding periods that may apply under US securities laws.
Bombay Stock Exchange (BSE)
BSE is Indian stock exchange located at Dalal Street, Mumbai (Maharashtra). It was established in 1875 (founded by Premchand Roychand as Native Share & Stock Brokers’ Association), making it Asia’s first stock exchange. It was first Indian stock exchange to be recognized by Government under the Securities Contracts Regulation Act in 1957. It has established India’s first international exchange India INX in December 2016 in GIFT city, Gujarat.
BSE’s popular equity index -S&P BSE SENSEX is India’s most widely tracked stock market benchmark index. BSE also provides host of services to capital market participants including risk management, clearing, settlement, market data services and education.
BSE is the world’s 12th largest stock exchange with overall market capitalization of more than $ 2 trillion as of July, 2017. It also claims to be world’s fastest stock exchange, with median trade speed of 6 microseconds. It is also a Partner Exchange of United Nations Sustainable Stock Exchange initiative, joining in September 2012.
BSE is first exchange in India and second in world to obtain an ISO 9001:2000 certification. It is also first Exchange in India and second in world to receive Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT).