Merger of International Exchanges at GIFT City to be Completed by January End

The merger of the two operational international exchanges at GIFT City – BSE’s India INX and NSE’s International Exchange – is set to be finalized by the end of January, as spoken by K Rajaraman, the chairperson of the International Financial Services Centres Authority (IFSCA) on December 6.

The consolidation of these two entities is predictable to uplift volumes at GIFT City exchanges. The current stereotype daily turnover on these international exchanges is $20 billion, primarily driven by the GIFT Nifty contract. The merger aims to streamline operations and enhance the competitiveness of GIFT City as a global financial hub.

Trading in GIFT City is particularly worthwhile as all transactions are denominated in dollars, eliminating the need for foreign investors to incur spare financing associated with currency conversion and hedging.

Moreover, Rajaraman disclosed that the notification for the uncontrived listing of Indian companies in GIFT City is expected to be released by April 2024. This move follows the Ministry of Corporate Affairs’ October 30 notification permitting specific classes of public companies to directly list on foreign stock exchanges. GIFT City is set to be the first among the seven jurisdictions where uncontrived listing will be permitted, offering Indian companies increased wangle to global wanted and improved valuation without the need for Global Depository Receipts (GDRs).

The legal and regulatory intricacies twin this notification will be closely monitored, with the success of the initiative dependent on the follow-up rules and implementation.

Merger of International Exchanges at GIFT City to be Completed by January End https://t.co/XN94P3VlwQ

— The Times Of Scoop (@TimesScoop) December 7, 2023