BS Primer: How US SEC recognition will benefit domestic issuances

The designated offshore securities market (DOSM) status given to the BSE by the US Securities and Exchange Commission (SEC) will reduce the regulatory burden and boost participation of US-based investors. 

Indian equities sold to US-based investors are subject to several restrictions, as the SEC categorises these as “restricted securities”. With the BSE obtaining DOSM status, securities listed on the BSE will not be subject to such restrictions. 

US investors dealing in securities listed out of the US need to comply with ‘Rule 144 of Regulation S’ under the US Securities Act. This rule applies to Indian companies that seek investments from US-based