BSE is first Indian bourse to get SEC recognition
BSE, Asia's oldest stock exchange, has become the first Indian exchange to be recognised as a designated offshore securities market (DOSM) by the U.S. Securities and Exchange Commission (SEC) “The DOSM status allows sale of securities to U.S. investors through the trading venue of BSE without registration of such securities with the U.S. SEC and thus eases the trades by U.S. investors in India,” the BSE said in a statement while adding that it will primarily benefit securities issued in US private placements to institutional investors.
According to the exchange, the recognition will also enhance the attractiveness of Indian Depository Receipts (IDRs) amongst US investors while providing additional benefits to companies whose securities are traded both in the US and on BSE.
Incidentally, ever since the IDRs of Standard Chartered Plc listed on the Indian bourses in June 2010, no other foreign company has issued IDRs to list in India.
Certain directors and officers of dual-listed companies will be permitted to resell their securities on BSE, regardless of any restrictions or holding periods that may apply under US securities laws, added the release by the Indian bourse.
While only a few exchanges globally enjoy the DOSM recognition, some of the notable ones are London Stock Exchange, Bourse de Luxembourg, Tokyo Stock Exchange and Toronto Stock Exchange.
Finsec Law Advisors acted as the sole counsel for BSE in securing the DOSM status and represented BSE before the SEC, said the release.
