Leading stock exchange BSE has received approval from the corporate affairs ministry to establish BSE International Exchange and BSE International Clearing Corporation at Gujarat International Finance Tec (GIFT) City.
BSE had signed a Memorandum of Understanding (MoU) at the Vibrant Gujarat Global Summit in January 2015 to set up these entities at the country’s first International Financial Services Centre (IFSC) at GIFT City.
Speaking on this occasion Ashishkumar Chauhan, MD & CEO, BSE said, “BSE is already known as world’s fastest stock exchange with the speed of six microseconds. BSE’s International stock exchange will provide a platform to trade on Equity Derivatives, Commodity Derivatives Currency Derivatives, Interest rate, Derivatives for Indian and foreign investors. BSE international exchange will also provide platform for global securities listed on the international exchanges such as NYSE, LSE, NASDAQ, etc. We also have many members given expression of interest already showing the enthusiasm about the new exchange in the investors fraternity.”
Through these units, BSE intends to develop an international exchange providing an electronic platform for facilitating trading, clearing and settlement of securities, commodities, interest rates, currencies, other classes of assets and derivatives by international investors in the GIFT SEZ-IFSC.
In the framework set for 2016 -17 the Minimum Alternate Tax (MAT) for entities established in GIFT IFSC was reduced from 18.5 % to 9 %. The Security Transaction Tax (STT), Commodity Transaction Tax (CTT) and Long Term Capital
Gain (LTCG) was completely waived off while the
Dividend Distribution Tax (DDT) is also abolished. The Government of Gujarat has also exempted stamp duty for entities having registered office in GIFT for capital market activities.