S&P Dow Jones to sell stake in indices venture to BSE
BSE will buy the S&P unit's 50% stake in the company. Though the size of the deal could not be ascertained, sources said the transaction is expected to be concluded in the first quarter of the current financial year.
Mumbai: S&P Dow Jones Indices is set to exit , its with to provide .BSE will buy the S&P unit's 50% stake in the company. Though the size of the deal could not be ascertained, sources said the transaction is expected to be concluded in the first quarter of the current financial year.
BSE said in its earnings release on Wednesday, "S&P Dow Jones Indices (a division of S&P Global) is in discussion with the bourse for divestment of its in Asia Index. This will be an important area of focus in the coming year."
A top exchange official told ET that the will be an "important auxiliary business" for the bourse. In March, Sebi directed index providers that managed key indices based on securities listed in India to be registered here. The move was aimed at boosting transparency in the administration of financial benchmarks.
Rival NSE too entirely owns its index provider.
Before S&P Dow Jones Indices (SDJI) partnered with BSE, the had an alliance with the NSE. A year after SDJI and BSE joined hands in 2017, differences cropped up between the two. At that time, BSE decided to terminate the partnership. However, it could not do so as the declared the termination invalid.
Sources said the decision by S&P and BSE to split is 'amicable'. S&P owns the domestic rating agency , which has a market cap of ₹31,539 crore.
Source: Stocks-Markets-Economic Times
