Top index provider S&P Dow Jones is preparing new indices for BSE International Exchange at Gujarat International Finance Tec-City (GIFT) city. “New indices for GIFT are a work in progress and we are still in the process of research,” S&P Dow Jones Indices Managing Director (product management) Alka Banerjee told PTI.
“The idea is not simply to take a foreign index but to use an Indian index and perhaps use another currency for trading (at the international exchange),” she said.
However, Banerjee, did not give any timeline for the launching the new indices on the international exchange.
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators such as the S&P 500 and the Dow Jones Industrial Average.
Its joint venture with BSE — Asia Index Private Ltd –maintains Asian indices under the umbrella brand S&P BSE Indices including the Sensex, a leading indicator of Indian equity market performance.
BSE’s proposed international exchange and international clearing corporation at the country’s first International Financial Services Centre (IFSC) is expected to be operational by January next year.
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 trade in such securities.
BSE is planning to invest Rs 500 crore for setting up the international exchange, which will offer a variety of international products. The international exchange will start off with derivatives products.
“For derivatives, the decision is for the exchange to make what would work best for their clients. For example, the Sensex is already listed on the Dubai exchange,” Banerjee said.
“This also requires the exchange where the local stock listings exist to provide permission.”
The international exchange is expected to help Indian start-ups raise equity from foreign investors by getting listed and provide companies incorporated outside India a platform to raise money in foreign currencies by issuance and listing of their shares on the international exchange.