In January 2015, BSE was the first stock exchange in world to sign a memorandum of understanding (MoU) with Gujarat International Finance Tec-City (GIFT) SEZ Ltd. at the Vibrant Gujarat Global Summit to set up an International Stock Exchange & International Clearing Corporation at the GIFT city-the country’s first International Financial Services Centre (IFSC).
BSE intends to develop an international exchange providing an electronic platform for facilitating trading, clearing and settlement of securities, commodities, interest rates, currencies, other classes of assets and derivatives by international investors in the GIFT SEZ-IFSC, subject to necessary approvals and operating guidelines for IFSCs.
Speaking on this occasion Shri Ashish kumar Chauhan, MD & CEO, BSE said “BSE is already known as world’s fastest stock exchange with the speed of 6 microseconds. BSE’s International stock exchange will provide a platform to trade on Equity Derivatives, Commodity Derivatives Currency Derivatives, Interest rate Derivatives for Indian and foreign investors. BSE international exchange will also provide platform for global securities listed on the international exchanges such as (NYSE, LSE, NASDAQ etc.) we have also many members given expression of interest already showing the enthusiasm about the new exchange in the investors fraternity.”
In the framework set for 2016 -17 the Minimum Alternate Tax (MAT) for entities established in GIFT IFSC was reduced from 18.5 % to 9 %. The Security Transaction Tax (STT), Commodity Transaction Tax (CTT) and Long Term Capital Gain (LTCG) was completely waived off while the Dividend Distribution Tax (DDT) is also abolished. The Government of Gujarat has also exempted stamp duty for entities having registered office in GIFT for capital market activities.