Millennium Post

BSE to seek US regulator nod for holding FBT status

Kolkata: 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.
"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 said.
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 $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 per cent 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.
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