TRANSFORMING GIFT IFSC

OVERVIEW

IFSCA & NSE IX Pioneering Innovations at GIFT IFSC:

• IFSCA Informal Guidance Scheme, 2024: Operational from January 1, 2025, this scheme enables stakeholders to seek clarifications on regulatory matters, fostering ease of doing business at GIFT IFSC.
• India’s First Fixed Income Derivatives: NSE IX launches groundbreaking derivatives on NIFTY Bharat Bond Indices, enhancing risk management and liquidity in India’s bond market.

Informal guidance scheme 2024

Launch Date: December 2, 2024

Operational Date: January 1, 2025

Purpose:

• Provides stakeholders with a streamlined mechanism to seek clarifications.
• Encourages transparency and regulatory compliance.

Key Benefits:

• Simplified navigation of regulatory frameworks.
• Boosts investor confidence and operational efficiency.

Understanding NIFTY Bharat Bond Derivatives

Product Overview:

• Based on NIFTY Bharat Bond Indices (AAA-rated bonds by government entities).
• Contracts offer a dynamic and reliable hedging mechanism.

Key Features:

• Instrument: FUTCBI
• Currency: USD
• Settlement: Cash Settled
• Lot Size: USD $10 * Index Points
• Trading Timings: 09:00 AM to 5:00 PM

Dynamic Price Limits: ±3% with incremental adjustments.

KEY BENEFITS

Market Impact:

• Enhances risk management tools for investors.
• Amplifies market depth and liquidity.

Global Positioning:

• Aligns with international standards.
• Solidifies GIFT IFSC as a premier global financial hub.

CONCLUSION

• These initiatives underscore India’s growing influence in global financial markets, combining innovation with strategic foresight.
• By fostering transparency, efficiency, and advanced financial instruments, GIFT IFSC strengthens its position as a hub for investors and innovators alike.
• With the IFSCA Informal Guidance Scheme and NSE IX’s Fixed Income Derivatives, India is poised to lead in offering world-class financial solutions while driving market development.