BSE to establish India’s first international exchange at GIFT City

AHMEDABAD: Bombay Stock Exchange (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).

BSE signed a memorandum of understanding (MoU) with GIFT SEZ Ltd, a wholly-owned subsidiary of GIFTCL at the Vibrant Gujarat Global Summit earlier this week. 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.

As per the MoU, BSE along with its associates and members will invest upto Rs. 150 crore for establishing upto a three lakh square feet built-up area (BUA) to set up this international exchange.

Ramakant Jha, MD & Group CEO, GIFT Company Ltd said, “BSE’s international exchange at GIFT City is a major step in making India’s first IFSC into a global financial hub. This agreement has further strengthened our bond with one of the world’s oldest stock exchange. Our aim is to make GIFT at or above par with globally benchmarked financial centres such as Shinjuku-Tokyo, Lujiazui-Shanghai, La Defense-Paris and London Dockyards.”

Earlier, BSE Brokers’ Forum, the association of BSE brokers, 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 investment expected at around Rs 200 crore.

Ashish Chauhan, MD & CEO, BSE said, “BSE is taking a lead in bringing international standards in India, in technology, compliance, corporate governance, promoting SMEs, creation and trading of sustainable and other indices, including the oldest and most popular India based index, the S&P BSE Sensex. This will help India to compete with other destinations and allow Indian and international companies, making GIFT as one of the foremost international financial centres in the world such as Hong Kong, Singapore, Dubai and London.”

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