The Dubai Gold and Commodity Exchange (DGCX) is planning to soon launch derivative products based on the the Bombay Stock Exchange (BSE) Sensitive Index or Sensex, a senior official with the bourse said here on Friday.
“We are waiting for regulatory and government approvals. Once we get these, we will launch the products, as we already have entered into licensing agreements with the BSE,” Samir Shah, chief business officer, DGCX, told Business Standard.
The products will give the large Indian diaspora in West Asia direct access to the Indian capital markets, Shah added. (WORLD AT YOUR DOORSTEP)
According to him, since DGCX has trading members plugged in from all over the Gulf region, trading will not be limited to Dubai alone.
“We have members all over the world, including in other emirates and neighbouring countries in the Gulf region. Since most developed nations do not restrict capital movement these investors also can access the products of DGCX,” Shah added. He did not see any need for clearance from Indian regulators as the products will be bought and sold outside India.
If the plan goes through, Sensex futures will be available for trade in different time zones. Sensex futures contracts have already commenced trading in four BRICS markets as part of the cross-listing programme launched on Friday.
In return, Brazil’s IBOVESPA futures, Russia’s MICEX Index futures, Hong Kong’s Hang Seng Index futures and South Africa’s FTSE/JSE Top 40 futures got listed on the BSE.
The cross-listing of benchmark equity index derivatives is likely to facilitate the growth of liquidity in the BRICS markets and will considerably strengthen their international position.
The BRICS alliance, called Bricsmart, was formed on October 12, 2011, at a conference of the World Federation of Exchanges in Johannesburg, South Africa.
