MUMBAI, Jan 28: The Bombay Stock Exchange (BSE) has decided to provide the Dollex index online to its members. The provision of a trading rate of the Dollex is likely to benefit foreign institutional investors who would be in a better position to evaluate the local stocks vis-a-vis the dollar value.According to a BSE director, the online Dollex index will help FIIs gauge the market better. Sources say the introduction of this value-added service by the BSE will definitely provide additional benefits to FIIs in terms of the total exposure taken by them in the domestic market in rupee terms vis-a-vis the dollar value.
However, the idea has been mooted to accommodate the importance of the same when the exchanges have futures and options in place.
It is learnt that Reuters has approached the BSE to provide the online foreign exchange feeds which would enable the exchange to compute the Dollex.However, the only hitch in the implementation of online Dollex is the approval required from the Department ofTelecommunications (DoT). According to a senior BSE official, since the `closed user group ' is a restrictive definition of the DoT, which differs from that of the exchange, a prior clearance would be required.
Sources also maintain that since the exchange plans to tap the users abroad, the role of DoT becomes vital.
At present, the exchange is providing equity feeds to certain online service providers like Reuters, UNI, Knight Ridder, Dow Jones and others.
``We earn revenue by providing these online data feeds and hence, DoT and MTNL are of the view that the revenue has to be shared with these bodies,'' comments a BSE official.
The Dollex index is currently computed on the basis of the BSE-200 stocks which serve as a benchmark, in terms of the reference rate available with the exchange.
According to BSE officials, the exchange rate as provided by the Reserve Bank of India at 2 pm, is taken into consideration while computing this index.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
