BSE's India INX eases market access for overseas investors

India International Exchange today said it has launched 'segregated nominee account structure' to facilitate ease of market access for foreign investors in International Financial Service Centre (IFSC) at Gujarat's Gift City.

The 'segregated nominee account structure' will give immediate access for foreign investors to trade on India International Exchange (India INX), a subsidiary of BSE. Also, it would help in decreasing transaction costs for overseas investors due to lower costs towards overheads.

"Through this mechanism, foreign investors can become end-clients of eligible segregated nominee account providers (the provider) for trading on the India INX products," the exchange said in a statement.

Entities that are eligible to become service providers include Sebi-registered brokers in IFSC, Foreign Portfolio Investors (Category I and II), trading or clearing members of international stock exchanges or clearing corporations that are regulated by a member of Financial Action Task Force (FATF).

Under the guidelines, the minimum net worth requirement for providers is USD 5 million.

Last week, NSE IFSC, a subsidiary of the National Stock Exchange, had put in place a similar framework in this regard to help overseas investors escape direct registration process and go through authorised brokers.

The decision by the exchanges comes after markets regulator Sebi last month allowed 'omnibus' trades at the Gujarat International Finance Tech (GIFT) City, the country's only IFSC.