USE Receives The Final Approval From Regulator
The United Stock Exchange of India Limited ( USE ) has received final approval from SEBI to commence operations in currency futures in all the four pairs of currencies i.e US Dollar – INR; EUR – INR ; Pound Sterling – INR; Japanese Yen – INR. In light of this approval, Bombay Stock Exchange Limited, the largest shareholder in USE, has officially suspended its operations in Currency Derivatives Segment.
Following SEBI approval, USE has vigorously launched its membership drive and over 150 members have already submitted their applications. Most of the members of BSE are expected to join USE. In addition, new members from the banking fraternity and broking field have evinced keen interest in the new exchange.
According to T. S. Narayanasami, MD & CEO of USE, “USE’s membership drive is in full swing and we are very pleased to see spontaneous response from the banks which are natural partners of USE apart from broking community. Trading Membership is initially free with nil transaction charges to begin with. It is envisaged that since almost the entire banking system are stakeholders, USE will gain significantly by the volumes traded by them on the exchange. Details on the membership process are placed on the website of USE (www.useindia.com ). USE has tentatively planned to commence operations in June 2010.”
Madhu Kannan, MD and CEO of the BSE added: “The currency derivatives market in India has enormous potential for continued growth in the next few years. We expect USE to compete well in this growing market on the basis of product innovation, the training and development of new participants, and strong leadership.”
About United Stock Exchange of India:
The United Stock Exchange of India Limited (USE) is India’s newest stock exchange authorized to commence operations in currency futures. The exchange is a unique Public-Private partnership with equity investments by both PSUs and the private sector. USE represents the commitment of ALL 21 Indian public sector banks (Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank), reputed private banks like Axis Bank, Federal Bank, HDFC Bank, J&K Bank and Corporate houses like Jaypee Capital, MMTC, Indian Potash Ltd. Bombay Stock Exchange is also a shareholder at USE with a 15% stake. In the years to come, USE aims to play a pivotal role in transforming India into a modern financial hub, by being India’s most preferred stock exchange, providing a range of sophisticated financial instruments for diverse market participants to trade on and manage their risks efficiently.