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State Bank of India on Thursday said it will acquire up to 9.95 per cent stake in India International Clearing Corporation (IFSC) Ltd subject to maximum investment of ₹34.03 crore.
The Clearing Corporation is a GIFT City (Gandhinagar, Gujarat) based Market Infrastructure Institution (MII).
The Corporation is the first international clearing corporation to be set up at Gujarat International Finance Tec-City (GIFT) International Financial Services Centre (IFSC).
In a regulatory filing, SBI said its investment is strategic, aimed at strengthening the financial markets infrastructure.
India’s largest bank said the requisite approvals required for the acquisition have been received from the Reserve Bank of India (in July 2021) and IFSC Authority (in July 2021).
Per the filing, initial subscription is estimated to be completed by March 31, 2022. Thereafter, the Clearing Corporation may call up the residual commitment from SBI in accordance with the transaction documents and applicable law.
The nature of consideration for the acquisition is cash, computed as purchase shares multiplied by purchase price of ₹1 per share.
The Clearing Corporation acts as a central counterparty providing clearing & settlement and risk management services to India International Exchange (IFSC) Ltd.
SBI said the Clearing Corporation is ‘AAA’ rated and clears and settles index and single stock derivatives, commodity derivatives, currency derivatives and debt securities.
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