The merger between India INX (BSE’s arm) and NSE IX (NSE’s arm) at the International Financial Services Centre (IFSC) has been called off after more than a year of discussions.
The BSE board decided against the merger, choosing instead to invest in and grow India INX independently. Despite advanced merger talks, both exchanges will continue to operate separately, with NSE IX maintaining its singular presence at GIFT City.
India INX’s daily trading volume dropped significantly in FY24, while NSE IX saw a substantial increase in turnover. The BSE plans to revive India INX by developing new products and infrastructure, although several key officials have recently left the exchange.
Foreign investors have resumed buying fully accessible Indian government securities, reversing a six-week selling streak that saw holdings drop by nearly $2 billion.
From May 8-22, foreign portfolio investors increased their holdings by ₹3,304.8 crore to ₹1.6 lakh crore, according to data from the Clearing Corporation of India Limited. The easing US inflation and India’s upcoming inclusion in global bond indices have made Indian fixed-income instruments more attractive.
Declining American bond yields, influenced by lower-than-expected US inflation, have also contributed to this trend.
Sebi has proposed easing valuation rules for alternative investment funds (AIFs). The proposed changes address valuation methodology adjustments, eligibility criteria for independent valuers, and the reporting timeline to performance benchmarking agencies.
Sebi suggested that while listed securities should follow mutual fund norms, unlisted securities should be valued according to the International Private Equity and Venture Capital Valuation Guidelines (IPEV Guidelines).
The AIF industry had highlighted that mutual fund valuation norms are not suitable for private investments held by AIFs, which require a fundamental valuation based on cash flows.
Hong Kong is considering allowing staking for exchange-traded funds (ETFs) investing directly in Ether, potentially providing a source of passive income for investors. The Securities and Futures Commission (SFC) has been in discussions with crypto ETF issuers about offering staking services through licensed platforms.
If approved, staking yields could increase demand for Hong Kong’s spot-crypto ETFs, which have seen lukewarm interest since their launch in April. This move could also give Hong Kong an advantage over the US, where regulatory prospects for spot-Ether ETFs have improved, but without staking.
Staking involves locking tokens to validate transactions, offering an annual return of about 4%. The discussions are part of Hong Kong’s efforts to become a leading digital-asset hub, competing with cities like Singapore and Dubai.
