NSE launches its exchange at GIFT IFSC in Gujarat

GIFT City is India's first operational smart city with a multi- industry India centric services zone as well as the SEZ that houses the IFSC as a hub for global financial markets akin to London, New York, Hong Kong and Singapore.

Present at the launch of NSE IFSC was Chief Minister of Gujarat Vijaybhai Rupani, Deputy Chief Minister of Gujarat Nitinbhai Patel and SEBI Chairman Ajay Tyagi.

Also present at the bell ringing were the state's chief secretary, Dr. J. N. Singh, along with Upendra Vasishth, Development Commissioner, Kandla SEZ, Sudhir Mankad, Chairman-GIFT and Ajay Pandey, GIFT City MD & Group CEO.

The NSE IFSC Limited (NSE IFSC) and NSE IFSC Clearing Corporation Limited (NICCL) have been formed as 100 per cent subsidiary companies of NSE and National Securities Clearing Corporation Limited (NSCCL) respectively, to operate as a stock exchange and clearing corporation respectively from GIFT.

SEBI Chairman Ajay Tyagi said, “Globalization is a great opportunity for developing countries and the GIFT IFSC offers an opportunity to develop our own market as a global International Financial Services Centre. In this context, I would like to congratulate NSE for launching their global exchange - the NSE IFSC in GIFT IFSC. This will be another trading venue for global investors and other market participants to transact in non-INR currency denomination at internationally competitive transaction costs.”

GIFT City MD and CEO Ajay Pandey said, “It is a momentous occasion for us to have India’s biggest stock exchange present in GIFT City. With NSE commencing operations at GIFT IFSC, the capital market vertical of India’s first IFSC hub is further strengthened.”

In the initial period, trading at NSE IFSC will take place for 16 hours, which will be gradually expanded in line with market feedback.

There will be two trading sessions, the first between 8 am and 5 pm and the second between 5.30 pm and 11.30 pm.

With these trading hours, there will be an overlap with the London and Dubai markets and will allow investors to react to news developments, over a longer period of time.

NSE Chairman, Ashok Chawla said, “The idea of developing an international financial center in India has been discussed several times in the past, but we are seeing the transformation of this vision into reality only today.’’

He said, “We will be offering a bouquet of products to global investors and market participants, which will include derivatives on Nifty indices, Indian stocks, commodity and currency products, which are popular among investors. In the years to come, we hope to make it a leading global marketplace, in a special zone which is cost-competitive with its global peers.”

To start with, the stock derivatives will include futures and options on 10 Indian stocks, including Axis Bank, HDFC Bank, ICICI Bank, Infosys, Larsen and Toubro, Maruti, Reliance Industries, SBI, Tata Motors and TCS.

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Index Derivatives will be traded on leading Nifty indices namely Nifty 50, Nifty Bank and Nifty IT. In addition derivatives will be available on precious metals Gold & Silver and currency derivatives on leading global currency pairs of EUR-USD and GBP-USD.

NSE CEO In-charge, J Ravichandran said, “We are confident that in the coming years, NSE IFSC will become an attractive marketplace for global investors, who have shown tremendous faith in the growth story of India and Indian markets. NSE IFSC will remain strongly committed to the development of the GIFT IFSC as a global IFSC and will continue its efforts to build the required ecosystem for the success of NSE IFSC”. 

The clearing and settlement of all trades executed on NSE IFSC will be managed by the NSE IFSC clearing corporation. Two clearing banks namely ICICI Bank and Kotak Bank are already onboard as the clearing banks for funds settlement.

Images: NSE India