Proprietary trades drive GIFT City volumes

Most trades by broker members; overseas investor participation yet to take off

Trading volumes at stock exchanges set up at the GIFT City, an international financial services centre (IFSC), are seeing a gradual uptick. But, the bulk of the volumes are on account of proprietary trading by brokers, while participation by overseas investors is yet to take off in a big way.

According to sources, nearly 70 per cent of the volumes at GIFT City are contributed to by the brokers, trying to take advantage of the various incentive schemes and tax exemptions.

“A majority of trades at the exchange are happening through proprietary trades. Most trades are proprietary short-term speculation, enabling