BSE’s India INX launches Segregated Nominee Account Structure

New Delhi: The India International Exchange (India INX) said that it has launched the Segregated Nominee Account Structure with a view to further facilitate ease of market access for foreign investors in the International Financial Service Centre (IFSC) at Gujarat International Finance-Tec (GIFT) City.

India INX, India's first international exchange based in the IFSC at GIFT City, was set up in January 2017.

“Through this mechanism, foreign investors can become end-Clients of eligible Segregated Nominee Account Providers (the “Provider”) for trading on the India INX products. India INX’s operating guidelines for the Segregated Nominee Accounts Structure adheres to the broad framework provided by the Securities and Exchange Board of India (SEBI),” an official statement said

Entities that are eligible to become Providers include SEBI-registered brokers in IFSC, Foreign Portfolio Investors (Cat I & II) as well as Trading / Clearing Members of International Stock Exchanges / Clearing Corporations that are regulated by a member of Financial Action Task Force (FATF). The minimum net worth requirement for Providers is USD 5 million.

Here are the key benefits of India INX’s Segregated Nominee Accounts Structure (as mentioned by the exchange)

• ·         Easy and immediate access for foreign investors to trade on India INX
• ·         Immediate access to global markets for FPIs and EPIs through established intermediaries.
• ·         Quicken on-boarding of clients
• ·         Structure also allows Providers to fund margins on behalf of their end-Clients through agreements
• ·         Segregated accounts ensure greater protection for end-Clients of Providers
• ·         Decrease in Transaction Costs due to lower costs towards overheads