BSE Bets On Mutual Funds, Listing Of Small Businesses
India’s stock exchanges seek to promote GIFT City as a global trading hub.
BSE Ltd. expects mutual fund distribution and listing of small businesses to drive its revenue.
“We have created new revenue sources like mutual fund distribution and SME listing and trading fees that will help yield more revenue,” Ashish Kumar Chauhan, managing director and chief executive officer at the stock exchange, told BloombergQuint.
Chauhan, however, does not see commodity exchanges and GIFT City operations to contribute much towards revenue in the upcoming quarters.
BSE, its larger peer the National Stock Exchange Ltd., and the Metropolitan Stock Exchange have decided to stop sharing data with foreign peers to prevent volumes from shifting overseas. The bourses seek to promote the GIFT City, located in Prime Minister Narendra Modi’s home state, as a global trading centre.
BSE, Asia’s oldest bourse, returned over 90 percent of its operating profit to shareholders in the last five years. Chauhan said the exchange will continue to reward investors.
(Corrects an earlier version that misstated that the BSE is looking for higher revenue from mutual fund distribution and SME listing at the GIFT City)