BSE Investments Limited acquires 24% stake in CDSL Commodity Repository Limited (CCRL)
Mumbai, August 01, 2018: BSE Investments Limited (BSEIL), a 100% subsidiary of BSE acquired 24 per cent stake in CDSL Commodity Repository Limited (CCRL).
BSE believes in creation of market infrastructure institutions for development of various markets. CCRL will help in transforming commodity markets by creating electronic negotiable warehouse receipts (eNWR), with an aim to develop a robust framework for clearing and settlement of commodity trades.
Regulated by the Warehouse Development and Regulatory Authority (WDRA), CCRL will record the storage and transfers of commodities including warehouse receipt transfers, although deliveries are in physical form. It is similar to the way depositories function for equities and other financial securities. A trade repository is another important step forward in improving regulatory transparency in the commodity derivatives markets in India.
As per SECC regulations 41(3), BSE cannot take direct stake in unrelated business. Hence as per the regulations, the stake is being taken through a subsidiary BSE Investments as specified in the regulation.
CCRL will enable electronic accounting of commodities, thereby ensuring ease of use, higher accuracy and lower costs for document transmission. The commodity repository will also provide the legal and regulatory environment for inventory financing and warehouse receipt lending.
Shri Ashishkumar Chauhan, MD & CEO, BSE said, “We are delighted to partner with CCRL to provide a repository for commodities that will support regulatory reporting requirements for development of the commodities derivatives in India. We believe this partnership will further strengthen our quest of developing and strengthening Commodity markets in India”.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
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