BSE to cut ties with S&P Dow Jones Indices LLC; develop own in-house indices

Asia’s oldest bourse BSE has decided to snap ties with S&P Dow Jones, which manages and operates benchmark Sensex. Now it is planning to develop indices through its own in-house development team.

Key Facts

The two entities had announced joint venture called Asia Index in 2013 to provide array of indices enabling global and domestic investors to participate in South Asia’s vibrant economies. The deal with BSE came after expiry of licensing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil. BSE will not renew its agreement with S&P Dow Jones Indices LLC which expires on December 31, 2018 and it is looking to develop indices through its own team. The agreement was not renewed because as joint venture was not able expand reach and usage of the indexes in the foreign jurisdiction.

Background

S&P Dow Jones Indices LLC is  subsidiary of The McGraw-Hill Companies and it is world’s largest global resource for index-based concepts, data and research. BSE is Asia’s oldest stock exchange and is home to iconic Sensex index – a leading indicator of Indian equity market performance. The equity indices of National Stock Exchange (NSE), BSE’s rival are managed and operated by NSE’s subsidiary company NSE Indices.

Month: Current Affairs - November, 2018