Indian companies can sell securities directly to American investors after the US Securities and Exchange Commission (SEC) recognised the Bombay Stock Exchange (BSE) as a ‘Designated Offshore Securities Market’ (DOSM).
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The DOSM status allows sale of securities to US investors through the trading venue of BSE without registration of such securities with the SEC, the American market regulator, and thus eases the trades by US investors in India, according to the BSE.
BSE is the first stock exchange in India to receive DOSM recognition, joining a select list of bourses in the world.
“The recognition by the SEC speaks about the comparability of the international regulatory framework adopted by BSE, governing its structure, organisation and disclosure standards,” a statement by BSE said.
It will also provide significant advantages that can facilitate securities offerings by BSE-listed companies, particularly to US investors.
The new status will provide additional benefits to companies whose securities are traded both in the US and on BSE, the stock exchange said.
“We are delighted to receive the designated offshore securities market status,” said Ashishkumar Chauhan, MD & CEO, BSE.
First Published: IST