Sebi issues guidelines for GIFT City

Sebi lets exchanges launch all exchange-traded products that are currently allowed in a recognized jurisdiction; agricultural derivatives have been not been permitted


Photo: Aniruddha Chowdhury/Mint
Photo: Aniruddha Chowdhury/Mint

Mumbai: The Securities and Exchange Board of India (Sebi) on Monday issued guidelines for exchanges and clearing corporations looking to set up operations at the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-city (GIFT).

Sebi has allowed exchanges to launch all exchange-traded products that are currently allowed in a recognized jurisdiction. However, agricultural derivatives have been not been permitted to trade in GIFT. Sebi has given the exchanges freedom to select trading hours for different product categories and position limits.

“Stock exchanges in IFSC shall evolve a detailed framework for the applicable position limits for each product to be traded,” said the Sebi circular.

Mint had reported on 13 October that exchanges needed clarity on permitted products and investors.

In addition, clearing corporations in IFSC would need to maintain a fund to guarantee the settlement of trades.

“To begin with, such fund shall have a corpus equivalent to at least 10% of the net worth of the clearing corporation,” said the Sebi circular.

READ MORE