S&P Dow Jones Indices aims to sell entire stake in Asia Index by May 31

Leading index provider S&P Dow Jones Indices (S&P DJI) is targeting to sell its entire equity stake in Asia Index Private Ltd (AIPL) by May 31, according to an update by BSE on Tuesday. AIPL, a joint venture between S&P DJI and BSE, is best known for calculating and maintaining the popular index Sensex.

"S&P DJI is in the process of divesting its entire equity stake in AIPL. S&P DJI and BSE are targeting a May 31, 2024, closing date for the proposed divestment," BSE said in a circular. According to market buzz, BSE may buy out S&P Dow Jones Indices' entire 50 per cent stake in AIPL.

AIPL will continue providing services to clients until the May 31, 2024, target closing date, in accordance with the clients' contracts with AIPL or S&P DJI, respectively.

After the target closing date, AIPL will continue to provide its services to clients who remain subscribed to the indices in accordance with relevant contracts.

The transition in relation to the proposed divestment includes the creation of a new Secure File Transfer Protocol (SFTP), removal of reference to S&P DJI's marks from the names of the S&P BSE indices, modifications to the codes in the files or scheme of the S&P BSE indices received by clients, and changes to the marketing documents used by clients that refer to the S&P BSE indices.

On March 1, S&P DJI announced that it was in discussions to divest its equity stake in Asia Index Private Limited. S&P DJI had stated that it considers India as an important part of its global strategy, and will continue to independently operate and maintain offices and staff in the country.