BSE, the world’s largest bourse by number of companies listed, will float a separate subsidiary for its proposed international stock exchange in GIFT City at Gandhinagar, its Managing Director and Chief Executive Officer Ashish Chauhan said on Monday. “We already have a board approval for setting up a new subsidiary. We will also have a separate CEO for this new company”, Chauhan told BusinessLine here.

Chauhan said that the BSE’s proposed international exchange would offer equity products including equity derivatives, commodity derivatives, etc. GIFT City is being developed by the Gujarat Government as the country’s first international financial services centre.

To facilitate setting up of the IFSC in India, the Finance Minister Arun Jaitley had announced in the Budget a slew of tax sops including complete exemption from dividend distribution tax, securities transaction tax, long-term capital gains tax and commodity transaction tax. Jaitley had also announced a concessional minimum alternate tax of 9 per cent against the existing level of 18.5 per cent for companies set up in the IFSC.

Commodity derivatives Besides the Centre’s largesse on the tax front, Gujarat government had in February announced a stamp duty exemption for share-broking transactions of brokers who establish their registered broking office in the GIFT City.

Asked about the proposed commodity derivatives business, which BSE plans to enter into under its existing platform, Chauhan said final approvals are awaited from market regulator the Securities and Exchanges Board of India.

Chauhan also made it clear that BSE plans to mainly offer derivative contracts around metals and not on agri products.

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