In September last month India launched its third Stock Exchange named as “United Stock Exchange” after Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This is a very rare feat as countries around the world are happy to see their one stock exchange performing good or some having two.
Even with 3 SE one would feel that the volume could be less due to presence of already giant NSE and BSE. But contrary to that USE did business of 45 thousand crores to surprise each and every one!
United Stock Exchange of India Limited (USE) is India’s newest stock exchange for currency derivatives and has largest and single owner in the form of BSE. The exchange offers a better platform to corporate and SMEs for managing forex risk as spread rates in an exchange are better and it does not involve any counter party risk. USE has a unique Public-Private partnership with equity participation by both PSUs and the private sector banks. All 21 Indian public sector banks have promoted United Stock Exchange by investing in equity which include. In addition to public sector banks, 5 private sector banks have also an equity participation in USE; they include Axis Bank, Federal Bank, HDFC Bank, ICICI Bank and J&K Bank.
Apart from banks, Jaypee Capital, MMTC and Indian Potash have also invested in United Stock Exchange to build an institution that is on its way to becoming an enduring symbol of India’s modern financial markets. Bombay Stock Exchange is also a strategic partner with USE as it holds a 15% stake and all its members are connected to the new USE platform.