NEW DELHI, February 28:
The National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange Ltd (BSE) are setting up an international exchange in a Special Economic Zone (SEZ) in Gujarat’s capital Gandhinagar to compete for global customers with the DGCX in Dubai, the SGX in Singapore and HKEx in Hong Kong.
The two exchanges will work towards moving the centre of gravity of key trading segments back to India.
On Thursday, the NSE announced that it is setting up an international exchange in a special economic zone (SEZ) being developed as the country’s first International Financial Services Centre (IFSC) by Gujarat International Finance Tec-City Co. Ltd (GIFT) in Gujarat state’s capital Gandhinagar.
The announcement came ahead of the Union Budget on Saturday, which is expected to detail guidelines for IFSCs to facilitate offshore banking, currency convertibility and incentives to insurance and other financial services companies to operate from the SEZ.
The NSE’s agreement with GIFT, signed on Thursday, involves the setting up of an international bourse that will offer trading in equities, interest rates and currencies among other asset classes.
This comes a month after BSE Ltd signed a similar deal with GIFT, entailing an investment of INR 1.5 billion.
"In the absence of an IFSC in India, India has lost roughly 50% market share in the two most important India-related products: with rupee and Index being mostly traded on foreign platforms instead of onshore trading in such products," a GIFT statement released on January 12 had said. Indian media