Stock market regulator SEBI has approved its guidelines to govern international financial services centres (IFSC). The Gujarat International Finance Tec-City (GIFT City), coming up near Ahmedabad, is likely to be the first such centre. The BSE and NSE have already expressed their interest in to setting up an international exchange in GIFT City.
The IFSC norms seek to ease the setting up of stock exchanges and capital market infrastructure in such centres. A stock exchange can be set up with Rs. 25 crore of capital, against the normal requirement of Rs.100 crore. However, the amount has to be raised to Rs.100 crore within three years.
Further, such exchanges will be given three years to complete the process of de-mutualisation. For a clearing corporation, the initial capital required will be Rs. 50 crore, against the normal Rs.300 crore, to be achieved in three years.
The new norms would help create vibrant capital market activities in such centres. .