BSE's international stock exchange to go live in Jan

The exchange is planning to invest Rs 500 cr for setting the exchange, which would initially start off with derivatives products

Asia’s oldest bourse BSE plans to operationalise its international stock exchange during the Vibrant Gujarat Global Summit in January 2017.

The exchange is planning to invest Rs 500 crore for setting the exchange, which would initially start off with derivatives products, said a source in direct know of the matter.

In January 2015, it had signed a pact with Gujarat International Finance-Tech City (GIFT) to set up the two entities at the GIFT city, India’s first International Financial Services Centre (IFSC).

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-IFSC, subject to necessary approvals and operating guidelines. BSE also proposes to set up an international clearing corporation in the GIFT-IFSC so that foreign exchanges and clearing corporations may be inducted as partners into these entities.

Sources said the exchange’s registration has been completed and now they have started doing roadshows in different cities. BSE brokers, meanwhile, have started applying for a trading membership with the exchange and market regulator Securities and Exchange Board of India (Sebi) to get access to all the segments offered.

The international exchange has got the various tax incentives by the government, including exemptions from stamp duty, commodity and securities transactions tax etc. and will be subject to minimum alternative tax of nine per cent.

IFSC is being developed to cater to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.

Many emerging IFSCs around the world, such as Shanghai and Dubai, are aspiring to play a global role in the years to come.  London, New York and Singapore can be counted as global financial centres.