Operational costs at GIFT IFSC will be 80 per cent lower, says BSE CEO

BSE, which had signed an MoU with GIFT City in January 2015 for setting up the two entities at IFSC, will now seek necessary approvals and clearances from SEBI and expects to begin operations in the first quarter of the calendar year 2017. “This project is something that the PM (Narendra Modi) likes and so every will be happen quickly. Today I also met the new chief minister (Vijay Rupani) who has assured of all possible support,” Chauhan said.

“About 30-40 per cent of our 1400 members have already expressed interest in setting up base at GIFT City,” he added while telling the audience that meet was organised to specially help them understand the processes of GIFT City, the benefits, the trading and clearing systems, etc. Chauhan explained to the gathering that the Minimum Alternate Tax (MAT) for entities established in GIFT IFSC have already been reduced from 18.5 per cent to nine per cent; 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.

Chauhan said that a “special BSE team” consisting of about 50-odd members has been readied for this project, which will later shift to Gandhinagar. The head of BSE said that trading at the new exchange at GIFT will happen in dollars. “BSE International Exchange will trade on equity derivatives, commodity derivatives, currency derivatives, interest rate derivatives for Indian and foreign investors,” he added.

A list of 18 Frequently Asked Questions on GIFT IFSC and a note on the steps to setup office at the IFSC was also shared among the members.