financetom
Market
financetom
/
Market
/
BSE seeking US regulator's nod for FBT status
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
BSE seeking US regulator's nod for FBT status
May 13, 2018 3:55 AM

Asia's oldest bourse BSE is planning to seek US regulator's nod for holding the status of Foreign Board of Trade (FBT) for its India International Exchange in GIFT city, a top BSE official has said.

Share Market Live

NSE

"We are in the process of applying to seek approval from Commodities Futures Trading Commission (CFTC) as an FBT for our India International Exchange," BSE MD & CEO Ashish Kumar Chauhan told PTI.

FBT is any board of trade, exchange or market located outside the United States. Some countries have obtained approval as FBT like in Singapore.

FBT allows US brokers to trade directly from their systems in derivative products offered by India International Exchange, the average volume of which has reached USD 400-500 million per day, Chauhan said.

The National Stock Exchange (NSE) was also mulling a similar venture for Gujarat International Finance Tec-City (GIFT).

In February, on market regulator SEBI's instructions, the stock exchanges had said they will immediately stop trading of their indices on foreign bourses as part of a joint effort to stem the migration of liquidity to overseas markets.

On the proposed insurance platform, Chauhan said that BSE has formed a joint venture with US technology company Ebix to facilitate setting up an insurance distribution platform on the lines of BSE StAR MF platform.

"Ebix and BSE will hold 40 percent each and the rest 20 per cent will be held by other Indian entities or those nominated by Ebix and BSE. The initial capital is Rs 25 crore," he said.

Seeking to expand its footprint as a financial supermarket, BSE has decided to foray into insurance distribution following the success of BSE StAR MF.

"We are in the process of filing with the insurance regulator IRDA for approval. We expect to be ready to commence operations in 3-4 months after the regulatory approvals," Chauhan said.

"Ebix, a leading insurance exchange in the US, has a proven technology and business model for insurance distribution. Transactions in insurance are more complex than even mutual fund distribution," he said.

The joint venture company will leverage the network of MF agents close to two lakh across 3,000 towns and cities.

Initially, BSE may not charge any fees for offering the platform as an aggregator.

However, after 10 years of MF StAR platform, BSE has begun to charge Rs 5 per transaction from last month after the volumes soared.

"The platform does about 20 lakh transactions per month. About 20 per cent of the total investment in MF is routed through BSE. While, 30-40 per cent of new money inflows are from us," Chauhan said.

Meanwhile, BSE is also gearing up for launching commodities on the bourse from October 1 following SEBI's nod.

BSE said it is ready to keep the bourse open till late in the night from October 1 for the equity derivatives.

India International Exchange at GIFT city functions till late at night to support trade in tandem with international markets.

"We have to handhold some 200 brokers for late night trading," Chauhan said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Sector Update: Tech Stocks Advance Pre-Bell Wednesday
Sector Update: Tech Stocks Advance Pre-Bell Wednesday
May 26, 2025
09:10 AM EDT, 05/14/2025 (MT Newswires) -- Technology stocks advanced pre-bell Wednesday, as the Technology Select Sector SPDR Fund (XLK) was up 0.4% and the SPDR S&P Semiconductor ETF ( XSD ) was 0.3% higher recently. Sony Group ( SONY ) shares rose past 5% after the company reported a higher fiscal Q4 net income and announced a new 50...
US STOCKS-Wall St on track for higher open as trade optimism holds
US STOCKS-Wall St on track for higher open as trade optimism holds
May 26, 2025
(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) * Futures up: Dow 0.19%, S&P 500 0.27%, Nasdaq 0.37% * Three Fed speakers scheduled to speak on Wednesday * American Eagle Outfitters ( AEO ) drops after withdrawing FY forecast (Updates before markets open) By Shashwat Chauhan and Pranav...
Oil Prices Ease on Unexpected Rise in U.S. Inventories
Oil Prices Ease on Unexpected Rise in U.S. Inventories
May 26, 2025
09:04 AM EDT, 05/14/2025 (MT Newswires) -- Oil prices weakened early on Wednesday following a report showing U.S. inventories unexpectedly rose last week, heightening concerns the market is becoming oversupplied, even as OPEC issued another optimistic outlook for demand growth this year. West Texas Intermediate crude oil for June delivery was last seen down US$0.72 to US$62.95 per barrel, while...
Sector Update: Energy
Sector Update: Energy
May 26, 2025
09:04 AM EDT, 05/14/2025 (MT Newswires) -- Energy stocks fell premarket Wednesday with the Energy Select Sector SPDR Fund (XLE) recently declining by 0.4%. The United States Oil Fund (USO) was down 1% and the United States Natural Gas Fund (UNG) was 2.5% lower. Front-month US West Texas Intermediate crude oil was down 1.1% at $62.95 per barrel at the...
Copyright 2023-2025 - www.financetom.com All Rights Reserved