BSE, Asia’s oldest stock exchange, will establish an international exchange in GIFT SEZ-IFC, a multi-services special economic zone (SEZ) being developed as India’s first International Financial Services Centre (IFSC) by Gujarat International Finance Tec-City Company Ltd. (GIFTCL).
The stock exchange signed a memorandum of understanding (MoU) with GIFT SEZ, at the Vibrant Gujarat Global Summit on Monday.
BSE intends to develop an International Exchange providing electronic platform for facilitating trading, clearing and settlement of securities, commodities, interest rates, currencies, other classes of assets and derivatives by international investors in GIFT SEZ-IFSC in GIFT City subject to necessary approvals and operating guidelines for international financial centre, said BSE in a press release here. As per the MoU, BSE along with its associates and members will invest up to Rs.150 crore for establishing around 3 lakh square feet built-up area (BUA) to set up this international exchange.
GIFT SEZ has been notified as an International Financial Services Centre by Government of India as India’s first international financial centre. In the absence of an IFSC in India, according to the BSE, the country has lost roughly 50 per cent market share in the two most important India-related products — rupee and index — being mostly traded on foreign platforms instead of onshore trading in such products.
