Not just BSE, NSE: Global stock exchanges too want to set up shop in GIFT City

As Modi’s pet project, India’s first International Financial Services Centre (IFSC), GIFT City, inches closer to reality in Gandhinagar, a slew of global exchanges are looking to set up shop there in order to offer Indian investors the products and shares of companies listed on them. While the Bombay Stock Exchange and National Stock Exchange have already signed a memorandum of understanding with GIFT SEZ Ltd, a subsidiary of Gujarat International Financial Tec-City (GIFT City), to set up an international exchange in the GIFT SEZ area, a report in the Business Standard today said New York Stock Exchange (NYSE) and London Stock Exchange (LSE) are considering setting up extension counters there. Even Multi Commodities Exchange of India (MCX), the largest commodities exchange in the country, is planning to set up an international exchange there for offering futures in gold and other commodities, including metals. [caption id=“attachment_2067915” align=“alignleft” width=“380”]  Reuters[/caption] With an overall investment target of Rs 78,000 crore, GIFT City has attracted investments worth Rs9,000 crore by developing about 12.6 million square feet of area for various companies. The Union Budget presented by Finance Minister Arun Jaitley paved the way for setting up India’s first international finance services centre (IFSC), with the regulations likely to be issued next month. A note released by the department of financial services said only Indian public and private and foreign banks already operating in the country would be eligible in the IFSCs, with a minimum capital requirement of $20 million, to be put up by the parent bank. Anyone who deals in foreign currencies can be a part of GIFT and Indian investors can use these services or invest up to $250,000 a year abroad.