India to start mock trading for international exchange starting in October

Indian financial exchange BSE today said it has decided to begin mock trading sessions for its international exchange in Gujarat International Finance Tec-City (GIFT) from October 3rd.

BSE had signed a pact with GIFT SEZ Ltd in January last year to set up BSE International Exchange and BSE International Clearing Corporation at the GIFT city — India’s first International Financial Services Centre (IFSC).

In a slew of incentives for GIFT city, Union Finance Minister Arun Jaitley had announced in budget that security transaction tax, commodity transaction tax, dividend distribution tax and long term capital gain tax would be waived off for units located in IFSC, and they would be subject to minimum alternative tax (MAT) of 9% only.

“BSE has already commenced the process for setting up the exchange and clearing corporation and incorporated two companies viz BSE International Exchange (IFSC) Ltd and BSE International Clearing Corporation (IFSC) Ltd,” the exchange said in a notice.

“As part of the process the exchange intends to start mock trading with effect from October 3, 2016,” it added.

Besides, the government of Gujarat in its budget for financial year 2016-17 announced exemption of stamp duty for share broking transactions by share brokers whose broking offices are located in GIFT IFSC.

Last month, BSE received approval from the Corporate Affairs Ministry to establish BSE International Exchange and BSE International Clearing Corporation at GIFT.

BSE in its IPO papers has said that following the requisite regulatory approvals, the international exchange will provide an electronic trading platform that facilitates domestic companies to raise capital in foreign currency by issuing foreign currency denominated bonds and providing a trading platform to trade in such securities.

It will also help Indian startups to raise equity from foreign investors by getting listed as well as provide companies incorporated outside India to raise money in foreign currencies by the issuance and listing of their equity shares, on the international exchange.

Read Also: