INTERNATIONAL: BSE Receives US SEC Recognised Designated Offshore Securities Market Status

Thursday May 17 2018

On 16^th May 2018, the Bombay Stock Exchange (BSE) announces that it was BSE Recognised as a Designated Offshore Securities Market (DOSM) by the US Securities Exchange Commission under Rule 902 (b) of Regulation  under the U.S. Securities Act of 1933.

This Development makes BSE the first Asian Stock Exchange to be recognised as a Designated Offshore Securities Market.

This DOSM status  allows sale of securities to US investors through the trading venue of BSE without registration of such securities with the US SEC and thus eases the trades by US investors in India.

Previously, equity and bond securities listed and traded on BSE and issued in the U.S., could not generally be resold in non-prearranged trades executed through the facilities of BSE’s trading platform, without requiring that the seller forms a reasonable belief that the buyer is outside the U.S. Thus, effecting such transactions with U.S. persons without any restrictions under the Securities Act, 1933 was problematic.

This will now be facilitated after BSE’s recent recognition as a DOSM. The status of DOSM will provide significant advantages that can facilitate securities offerings by BSE-listed companies, particularly to U.S. investors. For instance, BSE-listed securities, originally issued in the U.S., in transactions that are exempt from SEC registration, may be freely resold on BSE.  This development is expected to primarily benefit securities issued in U.S. private placements to institutional investors.

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