India INX, NSE IFSC get Sebi's nod to launch derivatives on more stocks

Move is expected to deepen and broaden the equity derivatives market in IFSC

Markets regulator Sebi today said it has given approval to international exchanges of BSE and NSE at Gujarat International Finance Tec-City (GIFT) to launch derivatives on additional stocks.

The move is expected to deepen and broaden the equity derivatives market in International Financial Services Centre (IFSC) and will also help foreign investors in accessing such markets from IFSC.

Now, BSE's India International Exchange (India INX) and NSE's global bourse NSE IFSC can launch derivatives on additional 33 and 52 Indian stocks, respectively, Sebi said in a statement.

With this, these exchanges have been permitted to offer trading in a diversified range of products spanning various asset classes which include Indian index derivatives, derivatives on Indian stocks, derivatives on foreign stocks, currency derivatives and commodity futures on gold, silver and base metals.

BSE's India INX, in a statement, said it will introduce futures and option (F&O) contracts on 33 additional single stock from August 4. This is in addition to the 21 single stock F&O contracts already available for trading.

The exchange said it has sought more product approvals from the regulator and is looking forward to creating a robust ecosystem for its clients.

"We are very excited about adding 33 single stock derivatives contracts as it will deepen and broaden the equity derivatives market in the IFSC and will help foreign investors in accessing the equity derivatives market from IFSC," India INX Managing Director and CEO V Balasubramaniam said.

Separately, NSE MD and CEO Vikram Limaye said: "We welcome the approval given by Sebi for new products on NSE IFSC, especially the introduction of derivatives on 52 Indian stocks. This will enhance the offering of NSE IFSC for India based products and encourage much greater participation from foreign investors to give GIFT city a competitive edge among International IFSCs".

Sebi, which had already operationalised India INX and NSE IFSC in GIFT City, said that all categories of exchange-traded products as available for trading in exchanges in FATF/IOSCO (Financial Action Task Force/ International Organisation of Securities Commissions) compliant jurisdictions would be eligible for trading subject to its prior approval.

GIFT City in Gujarat, is being developed as the country's first IFSC, to enable Indian entities to compete on an equal footing with offshore financial centres and to provide facilities and regulations comparable to other international financial centres in the world.