Stamp Duty Incentives for Stock Brokers in GIFT City DTA: Unlocking Cost and Policy Advantages

GIFT City Gandhinagar has become India’s premier financial hub, attracting global stock brokers, high-frequency traders (HFTs), algorithmic trading firms, and proprietary stock trading desks. Beyond regulatory clarity and world-class infrastructure, what sets GIFT City apart is the direct financial incentives available to entities setting up operations in its Domestic Tariff Area (DTA).

Two major benefits stand out:

1. Stamp duty incentives for stock brokers in GIFT City DTA
2. Incentives under Gujarat’s IT/ITeS Policy

Together, they reduce transaction costs, improve operational efficiency, and provide a strong case for relocation or expansion into GIFT City.

1. Stamp Duty Incentives for Stock Brokers in GIFT City DTA

The stamp duty refund is the single most powerful incentive for brokers and proprietary trading firms moving into GIFT City’s Domestic Tariff Area. The Gujarat Government offers a 100% reimbursement of stamp duty paid on transactions, making GIFT City uniquely cost-competitive.

However, this benefit is available only when brokers establish real and verifiable operations in the City. The operating framework by Gift City Authorities prescribes minimum commitments based on net worth:

• Net Worth ₹5 Cr and above
  • Office Premises: At least 1,000 sq. ft. of dedicated space in GIFT City.
  • Staffing: A minimum of 20 full-time employees, including compliance, operations, and IT teams.
  • IT Infrastructure: Trading terminals, APIs, and session IDs must be mapped to GIFT City servers. HFT firms must ensure co-location facilities and disaster recovery setups are in GIFT City.
• Net Worth below ₹5 Cr
  • Office Premises: At least 500 sq. ft. of office space.
  • Staffing: A minimum of 10 full-time employees.
  • IT Infrastructure: Core trading systems and terminals must operate from the GIFT office.

This ensures the stamp duty rebate for stock brokers in GIFT City Gandhinagar is linked to genuine operational presence. For proprietary stock trading and HFT desks, this translates to massive recurring savings while building credibility in India’s only financial hub.

2. Incentives for Stock Brokers under Gujarat IT/ITeS Policy

Beyond stamp duty, Gujarat’s IT/ITeS Policy 2022–27 offers quantified support that directly reduces operational costs for brokers and trading firms.

• Rental Subsidy: Up to ₹10,000 per seat/month, capped at 1,000 seats, available for 5 years – ideal for compliance and back-office teams.
• Capital Expenditure (CAPEX) Support: 25% of eligible capital investment, up to ₹200 Cr per unit, enabling brokers to set up advanced IT infrastructure, servers, and co-location facilities.
• Operational Expenditure (OPEX) Support: 15% of eligible OPEX, capped at ₹20 Cr per year, lowering running costs for tech-intensive operations.
• Employment Incentives: 100% reimbursement of employer EPF/ESI contributions for 5 years, easing payroll costs.
• Power Incentives: 100% electricity duty reimbursement for 5 years and preferential tariffs for IT units, reducing costs for compute-heavy HFT systems.

For management, these quantified benefits make GIFT City not just a cost-saving location but a strategic base for scaling technology-driven broking operations.

Key Insights for Management

Directors should note that compliance with office space, staff, and IT infrastructure thresholds is mandatory for availing stamp duty refunds. The quantified IT/ITeS incentives amplify savings, lowering both upfront and ongoing costs. Together, they create a sustainable advantage for brokers relocating into GIFT City.

How Nexpective Advisors Can Help

Nexpective Advisors, based in GIFT City Gandhinagar, provides end-to-end support – from compliance with office/staff requirements to securing stamp duty refunds and maximizing IT/ITeS incentives. Our on-ground presence ensures seamless setup and sustained compliance.