SEBI approves launch of additional derivatives at GIFT City IFSC


 Mumbai, Aug 3: Market regulator Securities and Exchange Board of India (SEBI) on Thursday approved the launch of 85 additional derivatives in stock exchanges of Gujarat International Finance Tec-City International Financial Service Centre (GIFT City IFSC).

 SEBI elaborated that approval has been granted to BSE’s India INX (International Exchange) and NSE IFSC at the GIFT City IFSC to launch derivatives on additional 33 and 52 Indian stocks, respectively.  “SEBI had already operationalised two stock exchanges… and advised that all categories of exchange-traded products as available for trading in stock exchanges in FATF/IOSCO (Financial Action Task Force/ International Organisation of Securities Commissions) compliant jurisdictions shall be eligible for trading subject to prior approval of Sebi,” the regulator said.  

The approval now allows India INX and NSE IFSC to offer trade in a well-diversified range of products spanning various asset classes which include Indian index derivatives, derivatives on Indian stocks, derivatives on foreign stocks, currency derivatives and commodity futures on gold, silver and base metals.  According to Vikram Limaye, Managing Director and Chief Executive Officer of the NSE, additional derivatives will encourage greater participation from foreign investors.  “This will enhance the offering of NSE IFSC for India based products and encourage much greater participation from foreign investors to give GIFT city a competitive edge among international IFSC’s,” Limaye said.  On its part, BSE’s India INX said that 54 single stock derivatives will be offered for trade on its platform from Friday.  

“Starting August 4, 2017, a total of 54 single stock derivatives will be traded on BSE’s India INX, clocking a market capitalisation of Rs 72,34,061.09 crore, which amounts to 55 per cent of Rs 1,31,77,196.54 crore on BSE,” the stock exchange major said in a statement.  The Managing Director and Chief Executive Officer of India INX V. Balasubramaniam said: “We have sought more product approvals from the regulator and are looking forward to creating a robust ecosystem for our clients.”