PM Narendra Modi expressed his pleasure to present India its first international stock exchange at the Gift City (Gujarat International Financial Tech) in Gandhinagar.
Inaugurating the India International Exchange (INX), the wholly-owned subsidiary of the Bombay Stock Exchange (BSE) on Monday, Prime Minister said: ,”The exchange will create new standards in quality of service and speed of transactions in different time zones.”
India INX is one of the world’s most advanced technology platforms with a turn-around time of four micro seconds. It will operate for 22 hours a day to allow international investors and non residents Indians to trade from anywhere across the globe. It proposes to start trading initially in equity derivatives, currency derivatives, commodity derivatives including index and stocks.
“My vision is that GIFT City should become a price setter in several financial instruments, Non-Residents,” he said.
“I have been told that the international exchange would work for 22 hours a day. It will start when Japan exchanges begin and close when US markets end. The exchange will work from sunrise to sunset”, the PM added.
Although the international exchange was inaugurated on January 9, the trading operations are scheduled to begin on January 16.
BSE ChairmanSudhakar Rao was also present at the inauguration ceremony, which was also attended by Gujarat Chief Minister, Vijay Rupani.
“BSE is a pioneer in the world of financial services and India INX will act as a gateway to raise capital for the country’s infrastructure and development needs. In parallel, it would provide cross-border opportunities of investment with a comparatively low cost of transaction in the world’s most technologically advanced platform,” said Sudhakar Rao.
BSE is also going to sign a memorandum of understanding (MoU) at the Vibrant Summit proposing Rs 500 crore for its international exchange, clearing corporation and other activities.
GIFT IFSC provides a competitive advantage in terms of tax structure and supportive regulatory framework. These include benefits in security transaction tax, commodity transaction tax, dividend distribution tax and long term capital gain tax waivers and no income tax.