Asia’s oldest stock exchange to register brokers for international exchange
BSE Ltd, Asia’s oldest bourse, is on an overdrive in setting up its international exchange coming at GIFT City, country’s first international financial services centre in Gandhinagar.
It has just started off with its roadshows to attract brokers to get them registered. The first roadshow took place during the weekend in Kolkata and similar efforts would be conducted in other cities and overseas as well. Two subsidiaries to operationalise the exchange have also been formed, said Ashish Chauhan MD and CEO of BSE.
“We have come to Kolkata to discuss with the brokers. This was the first roadshow for the GIFT City exchange. We will have similar events in other cities and overseas also,” Chauhan said before interacting with the prospective brokers.
The initial formalities for forming the bourse at Gujarat International Finance Tech-City, including setting up the corporate entities needed for the exchange as well as the clearing house, have just been set up, Chauhan said.
“We have created two companies, one for exchange and one for clearing operation in September. They are BSE International Exchange and BSE International Clearance Corporation. We are hoping to go live very soon.”
While country’s oldest stock exchange has received approval from the corporate affairs ministry to establish the international exchange and clearing corporation at GIFT, it is waiting for approval from market regulator Securities and Exchange Board of India.
The international exchange is expected to provide an electronic trading platform that facilitates domestic companies to raise capital in foreign currency by issuing foreign currency-denominated bonds and to trade in such securities.
BSE, meanwhile, is preparing for its initial public offering of its shares, which Chauhan said would be an offer for sale by its existing promoters. “We intend to establish an international exchange in GIFT City, a multi-services Special Economic Zone that is currently being developed as India’s first international financial services centre.
Subject to receipt of the necessary regulatory approvals, the international exchange will provide an electronic trading platform that facilitates Indian companies in raising capital in foreign currency by issuing foreign-currency denominated bonds and providing a trading platform to trade on such securities, Indian startups to raise equity from foreign investors by getting listed on the international stock exchange and companies incorporated outside India to raise money in foreign currencies by issuing and listing their equity shares on the international stock exchange,” BSE said in its prospectus filed with SEBI earlier this month.
The exchange is reportedly roping in Deutsche Boerse to set up trading infrastructure for the proposed exchange. “We may seek to partner with third parties, such as other exchange operators, to establish and operate the exchange, and we may similarly seek to partner with third parties to run the related clearing corporation,” BSE said in its disclosure.
Source: DNA
