The move is the biggest expansion by the commodity exchange company after it was taken out of the control of Financial Technologies, which was caught up in a scam involved thousands of crores of rupees.
The exchange being set up by MCX in GIFT will deal in securities, commodities, interest rates, currencies, other classes of assets and derivatives to international investors in GIFTSEZ-IFSC, MCX said.
Gujarat International Finance Tec-City (GIFT City) is being developed as India’s First Global Financial Hub.
Part of Gift City is notified as a multi-service SEZ, with International Finance Service Centre (IFSC) status, which aims to cater to India’s large financial services potential by offering global firms, world-class infrastructure and facilities.
Unlike the current financial capital Mumbai, GIFT City is expected to provide the “finest quality of life.” Mumbai is among the most congested places on the planet, with infrastructure that barely manages to cope with the number of inhabitants.
GIFT is expected to provide 5 lakh direct and an equal number of indirect jobs which would require 62 million Square feet of commercial, residential & social facilities with a total investment of about Rs.78,000 crore, over the next 10 years.
“We are happy to sign the MoU with GIFT City for developing an international exchange which can successfully explore and exploit the huge untapped potential of a free financial market envisaged in the IFSC, GIFT City,” said Parveen Kumar Singhal, Joint Managing Director, MCX.
“Given the consistent leadership position, robust processes and strong technological backbone of MCX, we believe that the international exchange platfarm can nat only fulfil the government’s vision of successfully developing an IFSC in India but also be able to create tangible benefits to India’s real economy too thraugh the economic linkages.”
MCX is the largest commodity exchange in India with a market share of 84% and also ranks among the top 10 commodity derivatives exchanges in the world.