BNP Paribas Handles Half of Record India Index Trades

BNP Paribas SA handled approximately 1.9 billion dollars in stock trades during the National Stock Exchange's 20-minute closing-auction session on August 31. This volume represented nearly half of the record 4.2 billion dollars in total trades triggered by MSCI Inc.'s index rebalancing.

The French lender executed roughly 180 billion rupees in transactions, primarily for global institutional investors such as Millennium Management. This activity was approximately 33 times the average volume recorded since the auction mechanism was launched on August 3.

The high concentration of trades through the bank is attributed to a favorable tax treaty between India and France. This treaty provides capital-gains benefits that are no longer available to other financial hubs, including Mauritius and Singapore. BNP Paribas has been expanding its securities-services franchise and operations in India, which includes establishing a presence in GIFT City.