NCDEX Signs MoU with India’s First International Financial Services Centre (IFSC) at GIFT City to Set up an International Commodity and Derivatives Exchange

National Commodity & Derivatives Exchange Ltd. (NCDEX), India’s leading commodity exchange, intends to establish an International Commodity and Derivatives Exchange in GIFT SEZ area, a multi-services Special Economic Zone (SEZ) being developed as India’s first International Financial Services Centre (IFSC) by GIFT SEZ Ltd. a wholly-owned subsidiary of Gujarat International Finance Tec-City Company Ltd (GIFTCL) known as GIFT City.

GIFT SEZ and NCDEX signed the Memorandum of Understanding (MoU) today at Gandhinagar. NCDEX intends to develop an International standard Commodity and Derivatives Exchange providing electronic platform for facilitating trading, clearing and settlement of securities, commodities, interest rates, currencies, other classes of assets and derivatives by International investors in GIFT SEZ-IFSC in GIFT City subject to necessary approvals and operating guidelines for International Financial Services Centre.

Mr. Samir Shah, MD & CEO, NCDEX said, “NCDEX, India’s leading online commodity exchange, wishes to tap the global commodities market by setting up an International Exchange at India’s first IFSC in GIFT City. This tie up will allow Indian and international entities to deal in financial products and services from India, making GIFT-India as one of the foremost International Financial Centres in the world.”

Mr. Ramakant Jha, MD & Group CEO, GIFT City said, “We welcome NCDEX at GIFT City to establish an International Commodity and Derivatives Exchange.  With the operating guidelines being issued by MoF, GoI and other regulators for IFSC, our aim is to make GIFT at or above par with other globally benchmarked financial centres. This MoU would help in attracting various international financial and commodity trading focused players and encourage global exchanges to set up base at GIFT IFSC.”

GIFT SEZ has been notified as an International Financial Services Centre by Government of India as India’s first International Financial Services Centre.

Recently, Hon’ble Finance Minster of India Shri Arun Jaitley had unveiled regulatory norms for International Financial Services Center (IFSC) in India at a conference on ‘Regulatory Framework for IFSC in India’ in Gandhinagar. Heads of foreign and Indian banks, insurance companies, asset management companies, consultancy firms, major brokerage firms, stock exchanges, private equity players as well as other players from and related to the BFSI space from India and abroad participated in this momentous event. Senior officials from Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) as well as Insurance Regulatory and Development Authority of India (IRDA) announced respective regulations at this conference.

Shri Arun Jaitley had said that through GIFT City, Gujarat has done pioneering work to create a Global Smart City in India and the IFSC at GIFT City will become a landmark for the country. India's first IFSC will be at par with international financial centres like Dubai, Singapore and Hong Kong.

About GIFT City:

Gujarat International Finance Tec-City (GIFT City), is India’s First Global Financial Hub. Part of GIFT City is notified as multi-service SEZ with International Financial Service Centre (IFSC) status which is catering to India's large financial services potential by offering global firms, world-class infrastructure and facilities. It is attracting the top talent in the country by providing the finest quality of life. It is estimated that GIFT would provide 5 lakh direct and an equal number of indirect jobs which would require 62 million square feet of commercial, residential & social facilities with total investment of about Rs. 78000 crore over next 10 years.

About NCDEX:

As India’s leading online exchange, NCDEX offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange in the country promoted by national level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nationwide reach, technology and risk management skills.