INSUBCONTINENT EXCLUSIVE:
financial hub in Gujarat, according to people with knowledge of the matter.
The brokers, who transact on behalf of overseas funds, are
seeking the same exemption from local taxes enjoyed by foreign funds in the Gujarat bourse, said the people, who asked not to be identified
as the discussions are private
They also want Indian authorities to have easier customer identification rules, the people said
clients, they said.
The National Stock Exchange of India Ltd
left traders scrambling to find new ways to manage their exposure Indian stocks
A months-long quarrel between the two exchanges over data and licensing rights escalated last month when NSE sued to stop SGX from starting
derivatives based on Indian stocks
investors in Gift.
Finance firms setting up units in Gift City are exempt from paying capital gains and transaction taxes in line with a
similar Chinese zone called Qianhai in Shenzhen
Foreign brokers, who have no physical presence in Gift but trade on behalf of offshore investors, also want the tax exemptions, the people
Ravi Varanasi, chief business development officer at NSE, said by phone.
Customer IDOffshore funds also want simpler customer identification
norms that can protect client confidentiality, the people said
beneficial owners of a foreign fund
These rules are more revealing than other Asian markets like Singapore, Hong Kong and Dubai
Varanasi said the regulator may just accept the legal entity identifiers for the offshore investor and not ask for other identification
documents.
The Futures Industry Association is expected to write to the exchanges and the regulator based on feedback from their broker
The association is also planning to meet the regulator and the government in August to sort out issues regarding taxation and id.
A fight
between Singapore Exchange and NSE over derivatives contracts broke into the open in February after NSE said it was axing licensing
agreements with overseas bourses as part of a broader effort by Asian nations to keep control of capital while integrating into the global
extend their licensing agreement beyond August, and for at least two months after the end of arbitration, SGX said in a statement Saturday
SGX was ordered to refrain from offering new India equity derivatives products such as those announced on April 11
Hearings on evidence in the case are expected to start in early 2019, according to the statement.
