BSE and NSE recently signed MoUs for setting up global stock exchanges to facilitate trading, clearing and settlement of securities...
With Sebi norms for India’s first international financial service centre (IFSC) in place, Gujarat’s GIFT City has urged BSE and NSE to formulate guidelines for setting up international stock exchanges.
BSE and NSE recently signed MoUs for setting up global stock exchanges to facilitate trading, clearing and settlement of securities as well as explore possibilities of starting trade facilities in asset classes like equities, interest rates and currencies, among other derivatives.
However, one of the major concerns for the bourses was lack of guidelines for setting up an IFSC. “You cannot proceed without rules. Phase-I of GIFT City is over and we have been doing marketing to bring the right institutions and infrastructure in place. We have a good mix of allotment and we are now hoping the next phase will be quicker. We are waiting for guidelines from RBI and IRDAI for more clarity,” said Ramakant Jha, MD, GIFT City.
“As we have developers on board, our marketing will be more focused. Once we have clarity on banking and insurance regulations, we will be able to get to the second stage. We need clarity on from the business perspective as well as a business friendly tax structure for the units that will operate out of the GIFT City. Most IFSCs have business friendly tax structures,” he said.
However, the pace of execution needed to be faster, said Jha. “There needs to be an alternate mechanism to resolve dispute so that the we do not have to undergo unnecessary procedural hassles. GIFT City has the potential to bring back $50 billion that we lose out to other global hubs,” he said.
The first phase of GIFT City will see development of 10 million sqft of commercial built-up area, with 7.7 million sq ft being developed by one of the promoter groups, IL&FS. It is strategically located on the Delhi-Mumbai Industrial Corridor.