The Bombay Stock Exchange (BSE) has acquired a 15% stake in the United Stock Exchange (USE), a new entrant in the currency derivatives space. The company, which has a paid up capital of Rs 150 crore, will operate as a BSE group company. BSE's investment will be Rs 22.5 crore, a 15% of the paid-up capital.
The existing shareholders of USE include HDFC, Bank of Baroda, Federal bank, Union Bank of India, Allahabad Bank and Bank of India, whereas the corporate shareholders include Jaypee Capital, MMTC, TCS, and Indian Potash.
The exchange has got the nod to start operations, and a BSE statement said that the venture between the two exchanges will strive to develop the currency and interest rate market. USE recently appointed former banker T.S. Narayanasami as Managing Director and CEO.
Narayansami said: “By partnering with BSE, we will significantly strengthen our offering and broaden our reach. BSE has an established regulatory structure, and strong distribution and exchange technology that will help us accelerate our plans to be a dominant player in the currency and interest rate derivatives market in India. In time to come we may perhaps look at using BSE’s infrastructure.”
