BSE Current Affairs

BSE to cut ties with S&P Dow Jones Indices LLC; develop own in-house indices

Asia’s oldest bourse BSE has decided to snap ties with S&P Dow Jones, which manages and operates benchmark Sensex. Now it is planning to develop indices through its own in-house development team.

Key Facts

The two entities had announced joint venture called Asia Index in 2013 to provide array of indices enabling global and domestic investors to participate in South Asia’s vibrant economies. The deal with BSE came after expiry of licensing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil. BSE will not renew its agreement with S&P Dow Jones Indices LLC which expires on December 31, 2018 and it is looking to develop indices through its own team. The agreement was not renewed because as joint venture was not able expand reach and usage of the indexes in the foreign jurisdiction.

Background

S&P Dow Jones Indices LLC is  subsidiary of The McGraw-Hill Companies and it is world’s largest global resource for index-based concepts, data and research. BSE is Asia’s oldest stock exchange and is home to iconic Sensex index – a leading indicator of Indian equity market performance. The equity indices of National Stock Exchange (NSE), BSE’s rival are managed and operated by NSE’s subsidiary company NSE Indices.

Month: Categories: India Current Affairs 2018

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BSE becomes first stock exchange to launch commodity derivative contracts

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

Background

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.

Month: Categories: Business & Economy Current Affairs 2018

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