NSE signs MOU with India’s first International Financial Services Centre (IFSC)

GANDHINAGAR, India - Feb. 26, 2015 - PRLog -- February 26, 2015: National Stock Exchange (NSE), India’s leading stock exchange, intends to establish an International Exchange in GIFT SEZ area, a multi-services Special Economic Zone (SEZ) being developed as India’s first International Financial Services Centre (IFSC) by GIFT SEZ Ltd. a wholly owned subsidiary of Gujarat International Finance Tec-City Company Ltd (GIFTCL) known as GIFT City.

GIFT SEZ and NSE signed the Memorandum of Understanding (MoU),  in the presence of Shri Saurabhbhai Patel, Hon’ble Finance Minister of Gujarat today at Gandhinagar. NSE intends to develop an International standard Exchange, providing an electronic platform for facilitating trading, clearing and settlement of securities, and shall explore the possibility of starting trading facilities in different asset classes like equities, interest rates, currencies, among others and their derivatives, subject to fulfilment of existing laws and guidelines as are being issued by the government and the regulators. The exchange can cater to international and other investors willing to operate from GIFT SEZ-IFSC in GIFT City.

Welcoming this major development for Gujarat, Shri Saurabhbhai Patel, Hon'ble Finance Minister, Gujarat said, “developing the country's first International Financial Services Centre (IFSC) in the Global Financial Hub at GIFT City has been the vision of Shri Narendra Modi, Hon'ble Prime Minister of India. Presence of NSE at GIFT City for operating an international exchange is a testimony of the recognition of GIFT City emerging as a preferred destination for International Financial Services in the country. This MoU would go a long way in establishing the country’s first International Exchange with participation of Global Institutions. The Gujarat Government with the help of the Central Government is taking all necessary steps, to fast track the development of GIFT City, which will transform the State of Gujarat and India as a whole and create a large  number of jobs.”

This is the second MOU that NSE has signed in Gujarat within a few weeks.  The first MOU was signed with the Gujarat Government, on starting financial education for school students, through satellite. The initiative is soon expected to be rolled out in 6000 government and  government aided schools in Gujarat, which are currently provided with virtual classrooms, where students will be taught about Finance, Savings & Investments.

Ms. Chitra Ramkrishna, MD & CEO, NSE said, “NSE is recognised globally for its expertise in trading and settlement and we are keen to be a part of this initiative. We consider the recognition of GIFT SEZ as IFSC by the Government of India, as a major step forward to serve the financial industry at large.  We at NSE, would like to be a part of the vision of the government to develop an International Financial Services Centre in India. This will help the nation to compete with other similar global destinations. This will also allow Indian and international entities, to deal in financial products and services from India, making GIFT-India as one of the foremost International Financial centres in the World.”

Mr. Ramakant Jha, MD & Group CEO, GIFT City said, “We welcome NSE at GIFT City to establish an International Exchange.  With the operating guidelines being issued by the Union Ministry of Finance, for an IFSC, our aim is to make GIFT at or above par with other globally benchmarked financial centres. This MoU would help in attracting various international services and thereby create an eco system for the operation of an International Exchange in the country.”

GIFT SEZ has been notified as an International Financial Services Centre by the Government of India, as India’s first International Financial Services Centre.

We believe that once operationalised, IFSC GIFT can fulfil trading needs of domestic and foreign traders, subject to regulator's guidelines. Moreover, many institutions and people may opt to hedge their underlying risks in foreign currency denominated products from India. It will also help international companies raise finance from other international investors within the International Finance Centre which can compete on rules, regulations and ease of business with other International Finance Centres.

About GIFT City:

Gujarat International Finance Tec-City (GIFT City), is India’s First Global Financial Hub. Part of GIFT City is notified as a multi-service SEZ, with International Financial Service Centre (IFSC) status, which is catering to India's large financial services potential by offering global firms, world-class infrastructure and facilities. It is attracting the top talent in the country by providing the finest quality of life. It is estimated that GIFT would provide 5 lakh direct and an equal number of indirect jobs which would require 62 million square feet of commercial, residential & social facilities with a total investment of about Rs. 78000 crore, over the next 10 years.

About NSE:

In its 20 year history, NSE has transformed the capital market, based on technology, innovation and high standards of governance and management practices. NSE's business practices, product innovation and high levels of integrity have earned it the trust of the financial market worldwide. Besides being a platform of choice for all exchange traded financial products like equity, derivatives, currency , debt, volatility index and global indices, in India, NSE’s flagship index, the Nifty 50, has become a benchmark as a national level economic parameter. According to the World Federation of Exchanges’ ratings, NSE is the largest exchange in the world in currency options and index options and third largest in cash market trade. Among the many accolades won by the exchange, the very recent and the coveted CII-EXIM Bank Prize for Business Excellence is a recognition of this remarkable journey. For more information about NSE, please visit: www.nseindia.com.

For further information Contact:

Mr Dipesh Shah, Vice President, GIFT – (Mob: +919825647311)

Mr Arindam Saha, Head - Corporate Communications - West & East, NSE - (Mob: +919930019202)