Deutsche Borse to sell BSE indices overseas

Germany's Deutsche Börse (DB), which owns a 5 per cent equity stake in the Bombay Stock Exchange (BSE), has been made an exclusive worldwide sales partner for all indices of the Indian bourse. The move opens up prospective trading interest for the domestic indices in European and other Asian markets.

The BSE, which is Asia's oldest stock exchange, is yet to attract investors' fancy in derivatives trading in its indices, and the move is aimed to attract more investor interest in its indices, especially from among foreign investors.

At a later stage, this would also help the exchange in activating its derivative segment by luring foreign institutional investors (FIIs) to its products, said its officials. Already, Barclays has an ETF (exchange-traded fund) listed on the Singapore exchange (iShares Sensex), which tracks the BSE's main index.

The BSE would also get to earn a licence fee from the users of its indices through the latest initiative, said senior officials.

Rival National Stock Exchange (NSE), in which the New York Stock Exchange (now NYSE-Euronext) holds a 5 per cent equity stake, has a near monopoly in the derivatives segment despite the fact that the BSE's Sensex is the most widely tracked index.

On the Nifty Index alone, the average daily trading turnover clocks over Rs 22,000 crore, while in comparison, the derivatives trading volume in the Sensex index is very nominal at Rs 1,000 crore.

The BSE provides various index series, BSE-100, 200 and 500 and other sector-specific indices, in addition to the popular Sensex. First compiled in 1986, the Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies.

The index is widely reported in both domestic and international markets through the print as well as electronic media. The BSE has continuously expanded the range of its indices with the BSE-100, 200 and 500 as well as different sector indices and the BSE DOLLEX Indices.

"The Sensex is a leading benchmark for the Indian sub-continent and we are delighted to be the exclusive partner in bringing together the Indian index business and the European market. With this cooperation, we further expand our index business in the Asian markets," said Dr Holger Wohlenberg, managing director for market data and analytics at the Deutsche Börse.

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BOMBAY DREAMS

Deutsche Börse has been made an exclusive worldwide sales partner for all indices of the BSE

The move opens up prospective trading interest for the domestic indices in European and other Asian markets

The BSE would also get to earn a licence fee from the users of its indices through the latest initiative

First compiled in 1986, the Sensex is a basket of 30 constituent stocks