BSE Calls Off Merger with NSE Arm at IFSC

BSE Calls Off Merger with NSE Arm at IFSC

Sub: Economy

Sec: Capital market

TAG: BSE, NSE

The planned merger between India INX and NSE IX, the stock exchange subsidiaries of BSE and NSE operating at the International Financial Services Centre (IFSC), has been called off.

Key Points:

• Merger called-off:
  • BSE decided to call off the merger discussions with NSE IX.
• BSE’s Stance:
  • BSE’s board assessed the merger proposal thoroughly and concluded that it is more beneficial to invest in and develop their exchange independently.
• Regulatory Response:
  • IFSCA mentioned that as long as BSE is committed to investing in and expanding its products at the IFSC, the authority supports their decision.

This development signifies BSE’s strategic choice to focus on independent growth rather than merging with NSE IX at the IFSC.

What are BSE and NSE?

BSE is short for the ‘Bombay Stock Exchange’. Founded in 1875, BSE is the first and one of the largest securities markets based out of Mumbai in India. NSE is short for the ‘National Stock Exchange’. Founded in 1972, it offers a country-wide stock market similar to BSE. While BSE is older, NSE is larger with greater daily trades and a higher turnover rate.

What are Sensex and Nifty?

While BSE and NSE are stock markets, both Sensex and Nifty are stock market indices. A stock market index summarises the movements of the market in real-time. A stock market index is created by grouping together similar kinds of stock. Sensex, which stands for ‘Stock Exchange Sensitive Index’, is the stock market index for the Bombay Stock Exchange. Nifty stands for ‘National Stock Exchange Fifty’ and is the index for the National Stock Exchange.