Introduction of rupee derivatives in IFSC is crucial for the development of Indian financial market
NSE IFSC launches Rupee Derivatives
Nirmala Sitharaman, Hon'ble Minister of Finance & Corporate Affairs, Government of India launches INR USD Rupee Derivatives Contracts
NSE IFSC Limited (Wholly owned subsidiary of National Stock Exchange of India Ltd) today announced the launch of Trading in Indian Rupee – US Dollar, Futures & Options Contracts on NSE IFSC, GIFT City, Gandhi Nagar, Gujarat.
The exchange has received requisite approvals from the relevant authorities including SEBI and RBI for launching INR USD Rupee Derivatives Contracts including SEBI, RBI and has commenced trading from the date of launch.
Smt. Nirmala Sitharaman, Hon'ble Minister of Finance & Corporate Affairs, Government of India has digitally launched the Rupee Derivatives (INRUSD) at NSE IFSC Gift City in the presence of dignitaries including Shri Tarun Bajaj, Secretary of Department of Economic Affairs, Shri Tapan Ray, MD & Group CEO, GIFT City and other esteemed officials from Ministry of Finance.
Shri Vikram Limaye, MD and CEO, NSE said, “Introduction of rupee derivatives in IFSC is crucial for the development of Indian financial markets. Rupee derivatives in IFSC would help in creating vibrant forex market in India. This will also play an important role to bring offshore rupee market back to India and strengthen price discovery in Indian markets.’’
Shri Tapan Ray, MD & Group CEO, GIFT City said, “We welcome today's launch of rupee dollar trading from the International Exchanges at GIFT IFSC. This new reform will enable India to become a net exporter of financial services, being in sync with the vision of GIFT City as a platform for onshoring financial services business, presently being lost to other financial centres across the world. We thank Govt of India and all regulators for their continued support in making GIFT City a truely global and vibrant financial hub."
Futures and Option contracts on Indian Rupee to United States Dollar and Indian Rupee USD Quanto products have been introduced for trading at NSE IFSC. NSE IFSC Clearing Corporation (NICCL) shall provide counter-party settlement guarantee for the trades executed on NSE IFSC Ltd.
The major participants in rupee derivatives contracts at NSE IFSC shall include Foreign Portfolio Investors (FPI), Corporations, IFSC Banking Units (IBUs) trading members, Global banks & custodian and Non-Resident Indians.
IFSC platform offers access for the international investors and non- resident participants who currently participate in INR trading in various offshore markets and shall offer such participants, an additional trading venue at par with the other offshore market platforms. Long trading hours and USD settlement at IFSC would also help to improve access for overseas participants. This shall in turn help these participants in hedging their rupee exposures effectively at IFSC.
NSE IFSC Limited offers trading in various products including in Index Derivatives (including derivatives contracts on NIFTY 50 and NIFTY Bank indices), Stock Derivatives, Currency Derivatives, Commodity Derivatives and Debt Securities. The trading in NSE IFSC is tax efficient with ease of access and longer trading hours and no currency risk for international participants as trading and settlement is in US Dollars.