The new exchange will provide electronic platform for facilitating trading, clearing and settlement of securities, commodities, currencies, other classes of assets and derivatives by international investors.
Leading bourse Bombay Stock Exchange on Friday said it will invest Rs 150 crore (Rs 1.5 billion) to set-up an international exchange in Gujarat.
This exchange will be set up in GIFT City, which is being developed by Gujarat government as the country’s first international financial services centre.
The new exchange will provide electronic platform for facilitating trading, clearing and settlement of securities, commodities, currencies, other classes of assets and derivatives by international investors.
BSE signed a memorandum of understanding with Gujarat International Finance Tec-City SEZ Ltd at the Vibrant Gujarat Global Summit earlier in the day.
As per the agreement, “BSE will establish an international exchange in GIFT SEZ-IFC, a multi-services special economic zone being developed as India’s first International Financial Services Centre by Gujarat International Finance Tec-City Company Ltd.”
BSE along with its associates and members will invest upto Rs 150 crore (Rs 1.5 billion) to set up this international exchange.
The new exchange will also help global companies raise finance from other overseas investors.
“This will help India to compete with other destinations . . . making GIFT as one of the foremost International Financial centres in the world such as Hong Kong, Singapore, Dubai and London,” BSE managing director and chief executive officer Ashish Chauhan said in a statement.
Earlier, BSE Brokers’ Forum entered into an agreement with GIFT City for setting up their operations and shifting their back-end operations in the domestic finance enclave.
BSE Brokers’ Forum has been allotted 4.5 lakh square feet of development rights with total investments expected at around Rs 200 crore (Rs 2 billion).