Raise debt through. Global Securities Market. - India s first international fund raising platform

Transcription

1 Raise debt through Global Securities Market - India s first international fund raising platform

2 9 th Jan Launch of India INX : National aspirations Gift City IFSC will provide facilities and regulations comparable to any other leading international finance centres in the world. this exchange will trade in equity, commodities, currencies and interest rate derivatives Masala bonds will also be available for trading here...companies from Asia, Africa and Europe should be able to raise funds from this important International Finance Centre - PM, Narendra Modi 2

3 MASTER PLAN GIFT IFSC: India s 1 st global capital market ecosystem About GIFT City What services at GIFT IFSC? Gujarat International Finance Tech City approx. 15mins from Ahmedabad International Airport Multi-services SEZ and host to India s first IFSC Smart city with state of the art infrastructure and utility services, residential accommodation and services Services that IFSC can provide Fund raising Asset management, global portfolio diversification, wealth management, broking operations Global tax management, cross-border tax liability optimization Global/ regional corporate treasury operations Risk management (insurance, reinsurance) M&A among transnational corporations Indian investors to invest / trade in global securities listed in International exchanges through IFSC Arbitration, mediation and other dispute resolution mechanisms offered by International Arbitration Centre in IFSC

4 Tax benefits offered at GIFT IFSC Tax benefits for all NO Security Transaction Tax (STT) NO Commodity Transaction Tax (CTT) NO Dividend Distribution Tax (DDT) NO Long Term Capital Gain (LTCG) tax 9% Minimum Alternate Tax (MAT) NO Stamp duty for entities with registered office at GIFT NO GST on services procured or offered internationally Income Tax Holidays 100% of eligible profits or gains first 5 years 50% of eligible profits or gains next 5 years 4

5 India INX universal exchange with complete ecosystem Listing and Trading Primary Markets Cash Equities / Fixed income / DRs Derivatives Global Securities Market India INX derivatives market for Equity, Currency, IRD and Commodities Post Trade Information Services Asia Index Pvt. Ltd. (JV between BSE and S&P) Technology hosting and connectivity

6 India INX is the market leader at GIFT IFSC Market share - INX vs competition India INX NSE IFSC 99% 98% 98% 96% 1% 2% 2% 4% Jul-17 Aug-17 Sep-17 Oct-17

7 Compelling value proposition from India INX (1/2) Diversified Portfolio Competitive cost Ease of Entry and Exit Derivatives product portfolio across all major assets class MF / AIF / PMs at IFSC can invest in Indian and foreign securities Debt securities for investment in INX s Global Securities Market No currency risk - transaction and settlement in USD Higher position limit with single market access Single segment for all products i.e. currency, commodities, debt and equity optimised use collateral Atleast 70% lower transaction charges vis-à-vis global exchanges Any Indian or foreign entity with IFSC subsidiary can trade at INX Direct access for registered FPIs Eligible Foreign Investors can trade as client with KYC from TM Any SEBI intermediary or its International Associate can offer primary market intermediary 1 services with approval from SEBI 7

8 Compelling value proposition from India INX (2/2) Liquidity Efficient fund raising platform Transparency and round the clock access Ease and Speed of Access Financial Safeguards USD 2+ Bn total monthly turnover in November2017 More than INR 1000Cr+ daily trading turnover on 4 th Dec participants at various stages of membership with India INX Efficient platform to raise debt capital from global investors Flexibility to raise capital in any global currency 22 hours NON-STOP access - opportunity to react to any change across globe through investment / hedge / arbitrage Real time price and transaction data feed Direct Market Access and Colo services for clients and members World s fastest exchange with median response time of 4 microsec Twice daily MTM settlement India ICC provides settlement guarantee for all trades done on INX 8

9 India INX s Global Securities Market builds on BSE s core values that made us most trusted capital raising platform in India BSE s Primary market - Core Values Impact 1 Transparency Technology 65% of all funds mobilised through BSE Integrity Regulation Competitive pricing 65% 90% Privately placed debt instruments Designated exchange for Debt public issues 1. Since April 2016 till November

10 Value Proposition of Global Securities Market 1 Competitive debt listing framework vis-à-vis global exchanges 2 Simplified and transparent listing process at par with global practice 3 Ease of raising funds by all type issuers 4 Most competitive listing fees as compared to global exchanges 5 Timely Response 10

11 Wide spectrum of Issuers allowed Who can Issue? Resident of FATF or FATF-Style Regional body Should not have been debarred in home jurisdiction or In jurisdiction where operating or In jurisdiction where raised any capital with exemptions as needed Supranational institutions multilateral institutions Statutory institution/ organization/agency An entity whose securities are irrevocably guaranteed by a FATF or FATF Style body Sovereign 11

12 Supranational bonds International Debt foreign currency denominated International Debt Indian currency denominated Sovereign debt Indexed bonds Debt issuance program Debt High Yield bonds Commercial Paper Asset backed securities Convertible bonds Depository receipts Wide spectrum of products allowed for listing Debt Securities that you can list at India INX immediately Future offerings 12

13 Simplified listing and ongoing disclosures at India INX Primary Listing Disclosures General Information of the Company (Issuer), Financials, Directors Information, Organisation Structure.. Securities Details Credit Rating Information Programme Information, if any Risk Factors Guarantor s Information, if any Pricing Supplement Continuous Listing Obligation Recurrent Obligations Annual Financials Record Dates for Security Holder s meetings Payment of Interest Conversion, Exchange, Subscription or cancellation rights, repayment, redemption Ad hoc Obligations Information which has material effect on price or value of security Change to the rights of the Holders Redemption or Cancellation of Securitites Buy back Exercise of Put Option Disclosure framework at India INX at par with international practice 13

14 Operational ease of listing at INX at par with global exchanges Local GAAP accepted Financial Statement International Issuers will be able to use local GAAP accounting standards when producing financial disclosure Flagging significant gaps with IFRS is enough Last 2 Years Audited Financial Statements Exceptions allowed under specific circumstances including 1) Guaranteed securities, the guarantor has published 2 years statements 2) Issuer has not been in existence for 2 years 3) Issuer an SPV Sensible treatment of SPV structures Common derogations hardwired Simplified secondary listing process Waivers are available for SPVs where two years of financials are not available Additional waivers if guaranteed or sovereign backed We have hardwired few important derogations into our circular less need for issuers to request for waiver of requirements India INX allows issuers with securities listed on any other Exchange to admit securities to GSM with minimum disclosures; in some cased only pricing supplement information will be required. 14

15 Simplified and transparent admission process Pre-submission INX GSM Listing team accessible to answer queries ahead of submission Submission Listing team as per disclosure requirements in line with GSM Rulebook Eligibility Review Assessment of eligibility criteria by INX GSM team within predefined time frame. Final submission confirmation Final form submission along with sanctioned confirmation and admission particular Admission for Trading Securities approved for admission to trading 15

16 India INX offers both OTC and exchange traded platform OTC Platform Available to all participants DVP-I Gross settlement Browser Based Reporting Platform Connectivity Through Internet 22 Hours Operational Platform User and Market Reports Trade History Securities Detailed Information Prospectus Downloads Bank & DP Verification Real Time Alerts Registered Participant Search with Contact Information Exchange Traded Platform Available to Members of the Exchange DVP-I Gross settlement Electronic Platform Efficient & Cost Effective Connectivity Through Internet or Leased Lines API for Intermediate Message Layer (IML) & Enhanced Trading Interface (ETI) Order Management System Direct Market Access (DMA) Sponsored Market Access (SMA) Single key to view Market Snap Shot User Defined Shortcut Keys Menu based and Keyboard based Accessibility India ICC clears and settles all debt transaction Securities settlement done through Clearstream 16

17 Thank You For more details please visit Or write to us at 17