7 years, 3 months ago

Sebi permits convergence of stock, commodity exchanges; to be effective from Oct 2018

Sebi’s move will allow major players like BSE, NSE to introduce commodity-backed financial instruments on their platforms, while MCX and NCDEX will be allowed to list equities and equity F&O The Securities and Exchange Board of India on Thursday gave its nod to the convergence of both equities and commodity-backed stocks on exchanges from October 2018. The move will allow major players like BSE, NSE to introduce commodity-backed financial instruments on their platforms, while MCX and NCDEX will be allowed to list equities and equity F&O. “BSE believes this decision will help participants in various markets a highly regulated, safer, more transparent trading, clearing and settlement framework when implemented fully,” said BSE’s MD and CEO Ashishkumar Chauhan. “BSE has geared up itself for long to provide these facilities to its more than 3.71 crore registered investors.” Angel Broking’s Head Advisory Amar Singh said: “The move is expected to broaden the markets and this key reform will go a long way in developing the Indian financial markets in years to come.” Sebi in its last Board meet for 2017 also enhanced eligibility requirement for CRAs, restricted crossholdings amongst them and added provisions for withdrawal of their ratings among others.

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