BSE becomes India’s first exchange to be recognized as a DOSM by the US SEC

Asia’s first stock exchange, the Bombay Stock Exchange (BSE) has become the first stock exchange in India to have received recognition as a ‘Designated Offshore Securities Market’ (DOSM) from the United States Securities and Exchange Commission (SEC)..Finsec Law Advisors acted as the sole counsel for BSE in securing the DOSM status and represented BSE before the SEC..The recognition is received under Rule 902 (b) of Regulation S under the U.S. Securities Act of 1933. BSE has now joined the elite list of foreign securities exchanges that have been recognized as DOSMs by the SEC..Equity and bond securities issued in the U.S. and listed and traded on the BSE may now be resold, without requiring the seller to form a prior reasonable belief that the buyer is outside of the U.S..Prior to this recognition, investors who wished to sell such securities (i.e., equity or debt securities issued by BSE listed companies in a private placement under the U.S. securities laws) had to take certain measures to ascertain the location of the purchaser prior to re-selling..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..In brief, the DOSM status allows the sale of securities to U.S. 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..The availability of a liquid resale market is expected to:.a) make exempt offerings by BSE-listed companies more attractive to U.S. investors and;.b) enhance the attractiveness of Indian Depository Receipts (IDRs) amongst US investors..(Read the press release)