BSE to start mock trading for international exchange in October

Mumbai: BSE on Thursday said it has decided to begin mock trading sessions for its international stock exchange in Gujarat International Finance Tec-City (GIFT) from October 3.

BSE had signed a pact with GIFT SEZ Ltd in January last year to set up BSE International Exchange and BSE Inter national Clearing Corporation at the GIFT city -India's first International Financial Services Centre (IFSC).

“BSE has already commenced the process for setting up the exchange and clearing corporation and incorporated two companies viz BSE International Exchange (IFSC) Ltd and BSE International Clearing Corporation (IFSC) Ltd,“ the exchange said in a notice. “As part of the process the exchange intends to start mock trading with effect from October 3, 2016,“ it added.

The details of mock trading environ ment, along with connection and trading parameters, shall be communicated subsequently by the exchange.

In a slew of incentives for GIFT city, Union Finance Minister Arun Jaitley had announced in budget that security transaction tax, commodity transaction tax, dividend distribution tax and long term capital gain tax would be waived off for units located in IFSC, and they would be subject to minimum a l t e r n a t ive t a x (MAT) of 9% only .

Besides, the government of Gujarat in its budget for financial year 2016-17 announced exemption of stamp duty for share broking transactions by share brokers whose broking offices are located in GIFT IFSC.

Last month, BSE received approval from the Corporate Affairs Ministry to establish BSE International Exchange and BSE International Clearing Corporation at GIFT.