• Smt. Nirmala Sitharaman, Hon’ble Minister of Finance & Corporate Affairs, Government of India launches INR USD Rupee Derivatives Contracts

MUMBAI, MAY 08, 2020 (GPN): 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. ENDS

About NSE IFSC:

NSE IFSC is a wholly owned subsidiary of NSE: The trading at NSE IFSC Limited was launched on June 5, 2017 post receiving grant of recognition from SEBI. NSE IFSC has already launched trading in Indian and Global stock derivatives, Index derivatives, currency derivatives, and non-agriculture commodity derivatives. SEBI has also permitted trading in wide range of products including equity shares of companies incorporated outside of India, depository receipts, debt securities of eligible issuers, interest rate derivatives and all categories of exchange traded products that are available for trading in stock exchanges in FATF/ IOSCO compliant jurisdictions

About National Stock Exchange of India Limited (NSE):

National Stock Exchange of India Ltd. (NSE) is the world’s largest derivatives exchange by trading volume as per the statistics published by Futures Industry Association (FIA) for 2019. NSE is also ranked 3rd in the world in the cash equities segment by number of trades as per the statistics published by the World Federation of Exchanges (WFE). NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.

For more information, please visit: www.nseindia.com