HDFC Bank Establishes HDFC Securities IFSC Limited at GIFT City

HDFC Bank Ltd has announced the incorporation of its wholly owned subsidiary, HDFC Securities IFSC Limited, effective October 1, 2024. This development follows the Reserve Bank of India’s approval, communicated on May 13, 2022, allowing HDFC Bank to establish a step-down subsidiary through HDFC Securities Limited for providing broking and clearing services within the International Financial Services Centre (IFSC) located at GIFT City. 

HDFC Securities IFSC Limited has been set up with an authorised capital of ₹30 crore and a paid-up capital of ₹15 crore. As a step-down subsidiary of HDFC Bank, it falls under the umbrella of related party transactions, although it does not involve any direct investment or acquisition by HDFC Bank. The bank holds no shares in HDFC Securities IFSC Limited; however, due to its shareholding in HDFC Securities Limited, the indirect ownership stands at 94.89% as of the incorporation date.

The primary goal of establishing HDFC Securities IFSC Limited is to provide comprehensive broking services to a diverse clientele, including residents, Non-Resident Indians (NRIs), and Foreign Portfolio Investors (FPIs). The subsidiary aims to become a member of prominent exchanges such as NSE IX, INDIA INX, and IIBX within the GIFT City Special Economic Zone (SEZ). This strategic move positions HDFC Securities IFSC Limited to offer a wide array of financial products, including GIFT derivatives, Unsponsored Depository Receipts (UDRs), global investment options, and Gold Bullion/Bullion Depository Receipts.

Before proceeding with the incorporation, HDFC Bank ensured that all necessary approvals from regulatory bodies, including the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the International Financial Services Centres Authority (IFSCA), were obtained.

The establishment of HDFC Securities IFSC Limited is a significant advancement for HDFC Bank, allowing it to enhance its service offerings in the rapidly evolving international financial markets. By tapping into the potential of GIFT City, the bank aims to cater to the growing demand for specialised financial services, contributing to the overall development of India’s financial ecosystem. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.