United Stock Exchange seeks permission for currency futures

Written by fe Bureau | New Delhi | Updated: Jan 21 2010, 05:44am hrs
United Stock Exchange (USE) has applied to Securities and Exchange Board of India (Sebi) for permission to start currency futures trading. Under the proposal, Bombay Stock Exchange (BSE) will transfer its newly started currency derivative business to the new domestic stock exchange.

United Stock Exchange is awaiting clearance from Securities and Exchange Board of India and will start currency trading after the approval, BSE managing director and chief executive officer Madhu Kannan told reporters on Wednesday.

BSE owns 15% stake in USE, while other shareholder of the bourse are public and private sector banks, MMTC and Delhi-based Jaypee Capital. Last year, BSE decided to shift its currency futures and interest rate futures businesses to USE as it wants to concentrate on equity trading. BSE will receive fee for the transfer of these business verticals to USE.

Kannan also said that BSE is waiting for guidelines on mobile trading to launch the facility. Penetration of mobile telephony in India is huge and being an exchange we have to use this as an asset. We continue to look at starting mobile trading on priority. We will launch the facility as and when the regulatory regime is cleared, he said.

BSE on Wednesday launched a new website to provide information on the public enterprises. The website has been created to bridge the huge go to market knowledge gap that exists in several PSUs. It also contains data on ongoing PSU initial or follow-on public offerings and those in the pipeline, and a comprehensive database of past disinvestments. Kannan said that BSE plans to launch similar websites in Indian languages too.