Date – 17/05/2018
BSE becomes first Indian stock exchange to get US SEC’s DOSM recognition.
– BSE Ltd (earlier known as Bombay Stock Exchange) became first Indian exchange to be designated as Designated Offshore Securities Market (DOSM) by United States Securities and Exchange Commission (US-SEC).
– DOSM status will allow sale of securities to US investors through trading venue of BSE without registration of such securities with US SEC. This will ease trades by US investors in India and also enhance attractiveness of Indian Depository Receipts (IDRs) amongst US investors.
– The new status is also expected to primarily benefit securities issued in US private placements to institutional investors. Moreover, it will provide liquid resale market which will exempt offerings by BSE-listed companies, making them more attractive to US investors.
– DOSM status will also provide additional benefits to companies whose securities are traded both in US and on BSE. It will allow certain directors and officers of dual-listed companies to resell their securities on BSE, regardless of any restrictions or holding periods that may apply under US securities law.