NRIs, foreign investors can now invest in GIFT City exchanges

The Reserve Bank of India (RBI) has given nod to foreign retail investors and Non-Resident Indians (NRIs) to invest in stock exchanges of GIFT City, in Gandhinagar, GIFT City officials said on Tuesday. The move will give a boost to investment in GIFT City exchanges.

"Till now only institutional investors were allowed to invest in GIFT City exchanges. Now foreign retail investors and NRIs will also be able to invest. Local residents can invest through Liberalized Remittance Scheme (LRS)," said Dipesh Shah, head of International Financial Services Centre (IFSC) at GIFT City.

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have set up India International Exchange and NSE – IFSC, their international exchanges at Gujarat International Finance Tec City – GIFT City to provide liberalised regulatory environment for trading in stock, commodity and currency derivatives.

GIFT IFSC on Friday clocked a turnover of $3 billion. Its average daily turnover is in the tune of $2 billion. Stock derivatives of BSE and NSE are the major contributor to the turnover.