HSBC and Standard Chartered Acquire Stakes in Clearing Corporation of India at GIFT City

British banks HSBC and Standard Chartered have acquired stakes in the Clearing Corporation of India-IFSC, the planned entity for a real-time foreign currency settlement system at GIFT City.

“Being a global bank, we connect India to the world and vice versa. GIFT City is bringing onshore what was previously offshore,” said Hitendra Dave, CEO of HSBC India.

Dave noted that after India’s inclusion in global bond indices, there’s been increased interest in the Indian market. He believes that more products from GIFT City will make it easier for institutional investors and NRIs to invest in India through products like Total Return Swaps (TRS) and fund of funds schemes.

HSBC executed transaction documents on May 17 to acquire a 6.125% stake in the CCIL IFSC. The deal involves buying 6.125 million equity shares at ₹10 each, expected to be completed within six months.

HSBC already holds similar stakes in the National Payments Corporation of India and the Clearing Corporation of India from earlier investments, according to Dave.

Standard Chartered Bank is also acquiring a 6.125% stake in the CCIL IFSC. Sachin Shah, the bank’s head of strategy and subsidiaries, reaffirmed their commitment to GIFT City’s growth.

India’s inclusion in JP Morgan’s sovereign debt index has increased foreign interest in domestic fixed-income markets. Global banks, including HSBC and Standard Chartered, are introducing new products from GIFT City, such as certain derivatives.

HSBC and Standard Chartered are the only banks executing offshore derivative instruments (ODIs) called TRS through GIFT City so far. Additionally, Indian banks HDFC Bank and State Bank of India (SBI) have also invested in the CCIL subsidiary. SBI acquired a 6.125% stake, while HDFC Bank announced plans to invest ₹12.25 crore in equity shares.

These investments show growing confidence in GIFT City’s role in connecting India to global financial markets.