Market

BSE to part ways with S&P Dow Jones

Updated : November 19, 2018 08:56 AM IST

The Bombay Stock Exchange (BSE) has decided to snap ties with S&P Dow Jones, which manages and operates the Sensex. Officials of the exchange said that BSE plans to develop its own indices with the help of its in-house development team.

The two entities had announced a joint venture - Asia Index - in 2013 to provide an array of indices enabling global and domestic investors to participate in South Asia’s vibrant economies.

The deal with BSE came after the expiry of the licensing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil.

The exchange officials said that BSE will not renew its agreement with S&P Dow Jones Indices LLC which expires on December 31, 2018.

“Basically, the tie-up was done five years ago. But the joint venture could not do much in terms of expanding in the foreign jurisdiction, the usage of the indexes and so on,” BSE Managing Director and Chief Executive Ashishkumar Chauhan told investors in a conference call.

“Hence, we have decided to not renew it, but overall the impact on profits or on the revenues will be minuscule,” he added.

Interestingly, the rival bourse National Stock Exchange’s (NSE) indices are managed and operated by NSE Indices, a service arm of the stock exchange.

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, is the world’s largest global resource for index-based concepts, data and research.

BSE is Asia’s oldest stock exchange and home to the iconic Sensex index - a leading indicator of Indian equity market performance.

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