MUMBAI: The Bombay Stock Exchange (BSE) plans to invest Rs 150 crore to set up an international exchange in Gujarat International Finance Tec-City Co (GIFT). GIFT is being developed by the state government as a smart city and as the country’s first International Financial Services Centre (IFC).
BSE plans to develop a global exchange to provide e-platform for facilitating trading, clearing and settlement of securities, commodities, interest rates, currencies and other classes of assets and derivatives by international investors. BSE signed an agreement with GIFT SEZ Ltd, a unit of GIFT, on Monday.
Asia’s oldest exchange plans to set up three lakh square feet built up area for the modern exchange at the city currently being built. The city has been notified by the centre as India’s first international financial centre.
An absence of an International finance centre in the country has meant losing half of its market share in trading in the Indian rupee and stocks index, which is currently being done from overseas markets, instead of onshore trading.
The BSE in its statement said trading volume of the rupee and India based indices is estimated at over $100 billion a day. Overseas venues like SGX (in Singapore), DGCX (in Dubai) and CME (in Chicago, and worldwide), and the global OTC and NDF markets, have been very successful in this trading.