NSE is all set to gear up its global exchange system from Gujarat International Finance Tec-City (GIFT), Gandhinagar. In the month of June, National Stock Exchange (NSE) hopes to initiate its international business, yet to get confirmed approval from SEBI.
A fully-owned subsidiary of bourse, NSE will start trading on the launch day itself focusing International Financial Services Centre (IFSC). At initial base, the priority will be single future stocks and non-agri commodities like gold, silver and copper.
However, product approval for crude trading in IFSC is stuck with the Petroleum Ministry.
NSE rival Bombay Stock Exchange commenced trading on the IFSC in early January and its trading volumes have crossed for more than Rs 500 crore on a daily basis.
SEBI is taking little bit time for approval of trading license over a number of pending issues till date. Quick resolution of these issues will make the speedy process for NSE’s license for GIFT City. Apart from this, an appointment of Vikram Limaye as the MD has not yet been cleared by SEBI. Neither does it has a chief which is making process lengthier.
Among the many benefits the IFSC offers, trading costs are down to a minimum as there securitization transaction costs are waived off.