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BSE & NSE International Exchanges Start Operations at GIFT City

Gujarat International Finance Tec-City (GIFT), a global financial hub, has recently opened for business as India’s International Financial Service Centre (IFSC). IFSC essentially caters to customers outside the jurisdiction of the host domestic economy, dealing with flows of financial products and services to and from the host economy with foreign entities. Gift City is emerging as the new financial capital of the world’s financial capitals. GIFT embodies the vision of an emergent India representing a bright beacon on the shores of financial growth, with conducive multi-service Specific Economic Zone (SEZ) and an exclusive Domestic Zone, a fully integrated city with a walk to work culture. It has next-in-class infrastructure, connectivity, people, technology and legal framework – emerging as a platform for business across the world.

Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have started their international exchanges at GIFT. According to Ramakant Jha, MD & Group CEO, GIFT City talks with other international exchanges including the New York Stock Exchange (NYSE), Exchanges from Dubai, Singapore, the London Stock Exchange (LSE), the London Metal Exchange and the Hong Kong Stock Exchange, among others, are on.

BSE International Exchange at GIFT city would initially start off with derivatives products and will offer a variety of international products. The international exchange is expected to provide an electronic trading platform that facilitates domestic companies to raise capital in foreign currency by issuing foreign currency denominated bonds and to trade in such securities. It would also help Indian startups to raise equity from foreign investors by getting listed and provide companies incorporated outside India a platform to raise money in foreign currencies by issuance and listing of their equity shares on the international exchange.

The GIFT city will be the first international finance services center of India where there would be no levy of securities transaction tax, commodities transaction tax, stamp duty, service tax and income tax. Only MAT (minimum alternate tax) will be applicable.

NSE IFSC Ltd, the global exchange promoted by the National Stock Exchange, to set up operations at IFSC, GIFT City will provide an electronic platform for facilitating trading, clearing and settlement of securities, and will also explore the possibility of starting trading facilities in different asset classes including equities, interest rates, and currencies, among others. The new exchange may also introduce other innovative products in line with SEBI regulations. This exchange will cater to international and other investors willing to operate from GIFT SEZ-IFSC in GIFT City.

Being a global exchange, NSE IFSC will remain operational for a longer period than the NSE during a trading day and all trades will be cleared and settled through NSE IFSC Clearing Corporations Ltd.

The regulator has recently issued norms allowing international exchanges to operate up to 23 hours in GIFT and settle trades at least twice a day.

Transactions worth $1 billion have already taken place at GIFT during last three months.  IFSC GIFT city allows companies to raise international money (dollars or euros) without having to leave India and provides an incipient alternative to the financial districts of London and Tokyo. To encourage GIFT and to demonstrate ease of business, a massive 54 provisions of the Companies Act are not applicable there.

GIFT city is equipped with some of the latest technology known to man. For its residents it has the best available amenities that include the latest integrated urban public transport, automated waste collection, efficient district cooling system; besides long green-belts, play areas, multi-level parking and a centralized security system.

Gift city provides investors a chance to be part of one of the most ambitious infrastructure and technological projects in the country today. India’s first IFSC is a hallmark of green-tech and best amenities from around the world. It offers immense opportunities to all to partner with a landmark in global finance.

Of the overall investment target of Rs 78,000 crore, GIFT City has already attracted investments worth Rs 9,000 crore by developing about 12.6 million square feet of area for various companies. Some companies from the financial sector have already started their operations at GIFT. The spanking new GIFT will be one of the highlights of Vibrant Gujarat, India’s premier business and investment summit to be hosted in Gandhinagar from January 10 to 13, 2017 and will attract investments.

The main advantages of GIFT city are creation of an estimated Five Lac direct jobs and equal number of indirect jobs. It will provide financial incentives, regulatory freedom and world-class infrastructure with unparalleled connectivity and transportation access. There will be strict adherence to environmental norms, with built-in technologies for a sustainable ecosystem. It will house National and International hub of IT & ITeS companies, finance companies, commodity exchange, Global trading, insurance, offshore banking and data centers, among others.

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