Everything finally seems to be falling in place for the Bombay Stock Exchange (BSE).
The exchange, which was mired in controversies following a spate of resignations by senior officials, could have a new CEO in place by October-end. This, in addition to the fact that exchange-traded currency derivatives will be launched at the exchange on October 1 provides relief for the exchange.
BSE?s managing director and chief executive officer Rajnikant Patel had resigned on August 8 and the post of CEO has been lying vacant since then. Jagdish Capoor, non-executive chairman of the BSE, said, ?Things look brighter as we will be staring currency derivaties at the excahnge.
Apart from that, we have zeroed in at least 4-5 candidates for the vacant post of the CEO. We assume that by the end of October, BSE will have a new CEO in place.?
Officials from the BSE, on condition of anonymity, said, ?Soon, we might also see the members of the Deutsche Boerse (DB) and Singapore Exchange (SGX) on the board of BSE.? In the recent past, BSE has been trying to increase its market share and fight competition from its arch rival, the National Stock Exchange (NSE).
BSE had received in-principal approval from Securities and Exchange Board of India (Sebi) for setting up a currency derivaties segment on August 28. This was in accordance with recommendations laid down in the report of the RBI-Sebi Standing Technical Committee on Exchange Traded Currency Futures, released by RBI and Sebi on May 29.
BSE is second stock exchange in the country which will set up a currency derivaties segment, after the National Stock Exchange (NSE).
The exchange traded currency futures contracts facilitate easy access, increased transparency, much needed efficient price discovery. They also enable better counterparty credit risk management, wider participation, trading of a standardised product and reduced transaction costs. Currently, banks, insurance companies, corporates, Sebi-registered brokers, are among those eligible for trading.