Exclusive: BSE INX and NSE International likely to be merged at IFSC platform – know objective behind this

ZeeBiz Exclusive: With an aim to bring both exchanges' synergies together, the International Financial Services Center Authority (IFSCA) is mulling merging BSE INX and NSE International – both are subsidiaries of two top exchanges in the country representing at a global level.

Zee Business Special Correspondent Tarun Sharma in an exclusive report pointed out that BSE INX and NSE International at IFSC (International Financial Services Centre) are likely to be merged. The regulator IFSCA is in talks with various stakeholders for the same, he added.

#ZBizExclusive | अब देश में होगा सिर्फ एक एक्सचेंज?

IFSC में होगा NSE-BSE का विलय !

क्या है उद्देश्य, क्या होंगे फायदें?

जानिए पूरी खबर इस वीडियो में...@NSEIndia @BSEIndia @SEBI_India @AnilSinghvi_ @talktotarun #Merger pic.twitter.com/7cK4sXEfc6

— Zee Business (@ZeeBusiness) August 2, 2022

According to Sharma, the motive behind this merger, the regulator believes, is to create one platform to compete with global peers.

IFSCA is seeking changes in the Companies Act to take forward the merger proposal. It is also in talks with the Ministry of Corporate Affairs, he said, adding that the regulator wants the merger should be done by the corporate affairs adjudicating authority to save time than by National Company Law Tribunal (NCLT).

When Zee Business approached both the exchanges for a reaction: BSE didn't comment while the NSE is yet to come up with a response, the principal correspondent said.

According to Sharma, “This is a big and unique concept as both BSE and NSE being big competitors to each other in the domestic market, are likely to compete as one entity in foreign markets post-merger.”  

The recently launched international bullion exchange (GIFT City) by PM Modi, has an equal share in the entity with a 20 per cent stake each of NSE, BSE, MCX, NCDL, and CDSL, Sharma pointed out.  

Zee Business Managing Editor Anil Singhvi mentioned that this move is more towards inter-operability and to be more competitive on an international platform. He added, now things to see would be, will both exchanges agree to a merger, as both have specific indices, and what would be nitty-gritty of the merger.

Singhvi believes that the chances of the merger are quite high as former BSE chief Ashish Chauhan has moved to NSE and the co-ordination between both exchanges is likely to be good. 

This merger will only be at GIFT City and not on a domestic basis, the Managing Editor said.