Stock Exchanges in India are exploring the opportunity to venture beyond the current businesses to create data repository services, Artificial Intelligence or a big data analytics eco-system. Last week, the Bombay Stock Exchange and the National Stock Exchange sought Securities and Exchange Board of India (SEBI)’s permission to form a separate entity to take on these businesses.
According to a news report published on 3 December 2017, a source said that these Stock Exchanges were seeking a “one-time regulatory approval to venture into business areas outside SEBI’s purview”.
Reportedly, the stock exchanges made the proposal to the newly-formed SEBI committee headed by former Reserve Bank of India Deputy Governor R Gandhi, which has been mandated to review norms for stock exchanges, depositories and clearing corporations.
A source told the newspaper:
“They have sought SEBI’s permission to engage in activities or businesses that are unrelated to, or not identical to, those of a stock exchange or of clearing corporations or their core business, through a separate legal entity.”
BSE has tied up with Switzerland’s algorithmic data analysis firm Sentifi to report social media updates related to 40,000 globally listed stocks. It is also betting big on selling insurance policies via a real time e-platform.
NDSL e-governance, Unique Identification Authority of India‘s Aadhaar data, and other related government projects are a gold mine of data and can propel these companies into the future of the Artificial Intelligence ecosystem.
A top official at a bank that owns a large stake in one of the stock exchanges said, “Stakeholders in Indian stock exchanges find their valuations are not growing because capital markets are heavily regulated, and are betting big on Artificial Intelligence, the future of business.”