India’s first international stock exchange that was launched on 10th January 2017 by the Prime minister Mr Narendra Modi is expected to set new standards of quality of service and lightning speed transactions. This great project has been doing the talks in the financial sector since 2007 and almost after a decade it has become a reality. The ultimate aim of the India international stock exchange (INX) is to create a world-class finance and IT zone for the country and provide high-class global services. It would have indeed been a proud moment for the prime minister of the country to launch BSE’s first international exchange at the Gujarat International Finance-Tec (GIFT) City, a place which he had conceptualised during his term as the chief minister of Gujarat. India INX will operate as a wholly owned subsidiary of the Bombay stock exchange (BSE). It is expected that the Bombay stock exchange will be investing close to Rs 5,000 million in the next 3 years on this promising project. It must be noted that the BSE has already invested close to Rs 2,000 million on this venture.
With a transaction time of microseconds, India International Exchange is certainly going to be the fastest international exchange in the world. This is 15 times faster than the Singapore International exchange, which is now the second fastest international exchange in the world. The Securities and Exchange Board of India (SEBI) has already allowed exchanges to launch trading in a variety of products.
In the initial phase, the India INX will offer derivative products in equity and commodities. In the second phase, it will offer bonds and debt securities. This will likely be implemented towards the latter half of this year. One interesting thing about the India INX is that it will open for trading for 22 hours every day. The exchange will open when trading activities begin in Japan and closes for the day along with the US exchange. Situated conveniently between the west and the east, the India INX will provide round the clock financial services to the entire world. The India INX comes along with a robust security system in place in order to avoid any breaches.
It has been announced that Mr V Balasubramanian who is currently serving as the chief business officer of the Bombay stock exchange will head the India INX. India INX has already set its eyes on the almost $50 billion offshore trade that is happening around the Asian market. It is projected that the India INX will bring close to $2.5 trillion worth of investments into the country in the next decade. Operating from the GIFT city, the India INX has significant advantages over the domestic exchanges. The Government had already announced in its previous budget that the firms operating in them will enjoy a tax holiday. Around 50 brokers have already registered to GIFT and around 100 more brokers are planning to shift their operations. With a robust infrastructure in place and a rich pool of talent around, the India International Stock Exchange will indeed turn India’s vision of creating a world-class finance and IT zone a reality.