1 min read.Updated: 19 Feb 2013, 08:53 PM ISTVyas Mohan
BSE Ltd forms joint venture with Dow Jones Indices
Mumbai: BSE Ltd has formed a joint venture with S&P Dow Jones Indices to manage Asia’s oldest bourse’s equity indices. BSE’s equity indices, which will carry the prefix S&P following the partnership, will be calculated, disseminated and licensed by S&P Dow Jones Indices.
The new alliance has been forged after the licensing agreement that S&P had with National Stock Exchange of India Ltd expired on 31 January, 2013, and both the parties decided not to extend the agreement.
“S&P will be running the indices from now. Unlike the agreement they had with the other exchange (NSE), this is a 50:50 joint venture and a perpetual company... several index funds follow S&P indices... this (the joint venture) will make it (Sensex) more tradeable and more invested upon," BSE managing directoe and chief executive officer Ashish Chauhan said.
BSE’s benchmark 30-share Sensex will henceforth be called S&P Sensex and the exchange’s wider indices, the BSE-100 and BSE-200, will also carry the prefix.
The S&P tag is expected to give the Sensex, which is currently traded in Brazil, Russia, Hong Kong and South Africa, more visibility among foreign investors even as the exchange is trying hard to boost derivative trades on its platform.