INSUBCONTINENT EXCLUSIVE:
will be traded at the Gujarat International Finance Tech (GIFT) City
The move is aimed at getting American investors to trade in the contracts at the emerging financial centre after Indian exchanges jointly
decided to scrap licences that allowed foreign bourses to offer their derivative contracts offshore in February.
NSE IFSC Exchange, the
NSE is expecting to get the nod in the next 20 days, said a top official
derivative contracts in GIFT City
from the US derivatives regulator with some urgency as the Singapore Exchange or SGX is set to launch its own Indian equity derivatives
Gandhinagar and Ahmedabad, to compete with international financial centres such as Singapore and Hong Kong.
Foreign investors have preferred
the SGX Nifty futures contract, which will cease to trade there after the NSE and BSE licences expire in August
Over the past two decades, the SGX Nifty offered access to a dollar-denominated product, which reduced currency-exchange related risk
introduce stock derivatives earlier, sparking panic among Indian exchanges and authorities, which fear a further flight of activity to
Trading volumes in SGX Nifty contracts are much higher than Nifty contracts on NSE.
To smoothen the entry of American investors into GIFT
City, the exchanges will also seek CFTC approval, on behalf of stock brokers, for selling market futures and options available in GIFT City
in the US under Regulation 30.10
