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Asia’s oldest bourse BSE has become the first Indian exchange to be designated as a ‘Designated Offshore Securities Market’ (DOSM) by the United States Securities and Exchange Commission (SEC), the company said on Wednesday.
The DOSM status allows sale of securities to US investors through the trading venue of BSE without registration of such securities with the US SEC, which eases the trades by US investors in India.
“This is expected to primarily benefit securities issued in US private placements to institutional investors.
The availability of a liquid resale market is expected to make exempt offerings by BSE-listed companies more attractive to US investors,” BSE said.
The recognition will also enhance the attractiveness of Indian Depository Receipts (IDRs) amongst US investors.
BSE’s new status will provide additional benefits to companies whose securities are traded both in the US and on BSE, it added.
“This is an important recognition of our endeavours not only to be the most modern platform technologically, but to also provide a globally recognised, well-regulated and well-governed venue for global investors who are looking at India with even more interest.
With this status, we will continue our growth of listings and also aim to become an even better place to enable investments into India by US investors,” said Ashishkumar Chauhan, MD CEO, BSE.
